Sezzle (SEZL) stock is a buy as the company can surpass its 2025 guidance of 60% to 65% revenue growth and $3.25 adjusted EPS, Oppenheimer said in a note Thursday.
The company stands out by serving customers with little or no credit history, offers a credit-building tool (Sezzle Up), and provides subscription services for more stable revenue, the investment firm said.
Premium services like Sezzle Premium and Sezzle Anywhere provide predictable revenue and now make up 30% of total revenue, Oppenheimer said.
The main risk is a worsening credit environment, but Sezzle should remain profitable even if revenue growth slows and loan losses rise, Oppenheimer analysts noted.
The company operates mainly in the US and Canada and currently holds less than 1% of the North American Buy Now, Pay Later market, which is estimated at $257 billion, according to the note.
Oppenheimer began coverage of Sezzle with an outperform rating and a $168 price target.
Shares of the company were up about 5.6% in recent trading.
Price: 138.44, Change: +7.24, Percent Change: +5.52
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