B.Riley Starts Sezzle Inc (SEZL) at Buy

B.Riley analyst Hal Goetsch initiates coverage on Sezzle Inc (NASDAQ: SEZL) with a Buy rating and a price target of $113.00.

The analyst comments: "SEZL is a high-growth, profitable buy-now-pay-later (BNPL) operator that drives high-ROI incremental sales for retailers while delighting customers with 0% APR point-of-sale financing for purchases both online and in store. We believe SEZL enjoys high growth potential as it participates in the rapid adoption of BNPL, which we view as the fintech industry's top payment innovation of the past decade. We also believe the company can grow at a high rate with very low marginal cost growth, which we expect will produce strong margin expansion. SEZL reached net income profitability for full-year 2023 and showed continued profitability progress through 1Q24, as well. The move to profitability with a strong balance sheet has put SEZL back on the radar for investors, and we believe plenty of upside potential remains. We base our $113 price target on a 16x multiple on our 2025 EPS estimate. We see the company as well positioned to penetrate more retail partner accounts, expand its consumer subscription service, and partner with a fintech bank to offer other banking services over time. We view our price target as modest given the nascent nature of both the growth BNPL industry, which is expected to post a 20% CAGR over the next decade, and SEZL's potential to monetize new consumer offerings that are not factored into our current estimates."

For an analyst ratings summary and ratings history on Sezzle Inc click here. For more ratings news on Sezzle Inc click here.

Shares of Sezzle Inc closed at $81.52 yesterday.

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