Core Insights - Sezzle's stock has experienced a significant pullback, down 16% in September and over 50% since its peak in July, amid broader fintech stock declines and rising credit market risks [1][3][4] Market Performance - The stock was volatile but steady in early September before declining towards the end of the month, influenced by negative employment data and bankruptcies in the auto sector [2][3] - Sezzle's recent IPO status means it has not yet navigated a full credit cycle, contributing to its sensitivity to credit risk [2] Analyst Coverage - TD Cowen initiated coverage of Sezzle with a hold rating and a price target of $82, indicating expectations for a stock pullback despite the company's rapid growth [5] - The analyst noted that Sezzle's growth is largely driven by the BNPL sector's overall strength, which is currently trading within a narrow valuation range [5] Legal Issues - Shopify has requested a judge to dismiss a lawsuit from Sezzle, which claims Shopify's BNPL product is anticompetitive and violates antitrust laws, adding to the stock's sell-off [6][7] Future Outlook - Sezzle forecasts a revenue growth of 60%-65% for 2025, but charge-offs have increased significantly from $8.2 million to $20.3 million in the second quarter, indicating potential challenges in customer repayments [9]