Topgolf Callaway Brands Corp. tumbled by the most since October 2020 on Wednesday after the company cut its profit forecast for the year, signaling that interest in golf is cooling following a pandemic-fueled surge.

Shares in the company, which generates most of its revenue from golf equipment and apparel, plunged 13%. Topgolf also tempered its annual projection for same-venue sales growth at its namesake chain of high-tech driving ranges, citing lower corporate sales expectations as companies curb spending.

“We worry about the company’s golf-equipment segment, which enjoyed incredible demand since the pandemic as golf experienced a surge in popularity,” CFRA analyst Zachary Warring wrote in a note to clients, downgrading his recommendation on Topgolf to hold from buy. “We believe demand may have been pulled forward and expect a slowdown in MODG’s highest margin business in 2023.”

Golf enjoyed a renaissance moment during the Covid-19 pandemic. Participation rose as Americans turned to the sport, which is played outside and naturally distanced. The shift help spur Callaway Golf Co. to buy the remainder of Topgolf Entertainment Group in late 2020, in a deal that valued the driving-range chain at about $2 billion.

The jump in interest was a boon for shares in golf-equipment makers including Topgolf and Acushnet Holdings Corp. Topgolf in June 2021 touched the highest level since 1997, while Acushnet notched a record in November 2021.

Peer Acushnet, whose brands include Titleist and FootJoy, also fell on Wednesday. Earlier this month, the company reported first-quarter net sales and adjusted earnings per share that topped Wall Street expectations.

CFRA’s Warring is an outlier among analysts who cover Topgolf as the majority of analysts tracked by Bloomberg recommend buying shares. The average analyst price target suggests return potential of more than 70% over the next 12 months.

--With assistance from Janet Freund.

(Updates for market close throughout.)