Why Wall Street Still Likes Sezzle (SEZL) Despite Guidance Concerns

Core Insights - Sezzle Inc. is positioned as a promising multibagger stock within the rapidly growing "Buy Now, Pay Later" (BNPL) market, providing flexible payment solutions for both merchants and consumers [1] - The global BNPL online value is projected to grow at a 9% CAGR, reaching approximately $580 billion by 2030, indicating substantial growth opportunities for Sezzle [2] - In Q2 2025, Sezzle reported a Gross Merchandise Volume (GMV) of $927 million, a 74% year-over-year increase, with total revenue rising 76.4% to $98.7 million [3] Financial Performance - Sezzle's adjusted net income increased by 92%, and the adjusted EBITDA margin improved by 550 basis points year-over-year to 38.4%, showcasing strong operational discipline [3] - Despite strong financial results, the stock experienced a decline of around 34% due to management's guidance indicating a slowdown in growth, which disappointed investors [4] - The stock remains up 100% year-to-date, reflecting overall positive market sentiment despite recent challenges [4] Analyst Sentiment - Analysts have maintained a positive outlook on Sezzle, with B. Riley Financial raising its price target from $101 to $111 while keeping a Buy rating, indicating the stock is attractively valued [5] - The company's consumer-focused features, such as Sezzle Up, which has over 2.9 million users, differentiate it from competitors by linking installment payments with credit-building [2] Industry Context - Sezzle operates in the U.S. financial technology sector, specializing in BNPL solutions that allow consumers to split purchases into interest-free installments, thereby enhancing merchant sales and customer engagement [6]