Sezzle (SEZL) is expected to remain one of the fastest gross profit and adjusted EBITDA growers in coverage, aided by ongoing market share gains, buy-now-pay-later expansion, and steady product innovation, Oppenheimer said in a Monday research note.
The company's Q2 is expected to benefit from strong consumer spending and repayment behavior, the investment firm said, adding that potential benefits from tax refunds could fade, while still-elevated fuel prices could weigh on future discretionary spending.
Sezzle appears to be on track to submit an application for a national bank charter in the coming weeks, though Oppenheimer views the bank charter as a 2027 event. The charter could enable deposit-gathering capabilities, potentially lowering funding costs and allowing for additional product offerings.
The brokerage said it sees room for the company to again raise its full-year earnings per share guidance and that the recent strength in the stock suggests investors are already pricing in potential 2026 EBITDA outperformance.
Oppenheimer lowered its rating to perform from outperform based on the company's current valuation.
Price: $172.40, Change: $+1.84, Percent Change: +1.08%