Simply Wall St
3 min read
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In recent days, Needham analyst Kyle Peterson initiated coverage on Sezzle, while the company also partnered with David’s Bridal and Times Square Alliance for a Valentine’s Day celebration that featured Sezzle-powered flexible payment options and Sezzle Cash giveaways.
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These developments come on top of very strong recent revenue and earnings growth, highlighting how Sezzle’s business traction is attracting both consumers and Wall Street attention.
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We’ll now consider how this fresh analyst coverage, combined with Sezzle’s visible consumer partnerships, may influence the company’s existing investment narrative.
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To own Sezzle, you need to believe its buy now, pay later model can keep scaling profitably while credit losses and marketing spend stay in check. The Needham initiation and Valentine’s Day partnership marginally support the demand-side catalyst of user and merchant growth, but do not directly change the most important near term driver, which remains execution on profitable growth, or the key risk around rising credit losses and heavier marketing investment.
The Times Square Valentine’s Day event with David’s Bridal and Times Square Alliance is most relevant here, as it puts Sezzle’s flexible payments in front of a high-intent audience in a very visible setting. While it does not remove concerns about the lower margin On Demand product mix or elevated loss provisions, it fits with the catalyst of growing consumer engagement and could feed into higher usage if Sezzle continues to convert this visibility into recurring transaction volume.
Yet beneath the enthusiasm, investors should be aware of rising credit loss provisions and what that might mean if…
Read the full narrative on Sezzle (it’s free!)
Sezzle’s narrative projects $885.4 million revenue and $232.2 million earnings by 2028.
Uncover how Sezzle’s forecasts yield a $103.25 fair value, a 66% upside to its current price.
While the consensus story focuses on steady growth and margin discipline, the most optimistic analysts see Sezzle’s risk profile very differently, with bullish forecasts once assuming revenue near US$957.3 million and earnings around US$250.9 million by 2028. In light of new analyst coverage and fresh consumer promotions, you should consider how those more aggressive expectations and the highlighted risk of tighter consumer credit rules might evolve as new data comes in.
