Northland Securities analyst Michael Grondahl has maintained their bullish stance on SEZL stock, giving a Buy rating on September 29.
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Michael Grondahl has given his Buy rating due to a combination of factors influencing Sezzle Inc.’s current market position and future prospects. The company has experienced a recent decline in stock price, attributed to a weaker-than-expected take rate in the second quarter of 2025 and a shift towards a greater mix of On-Demand users, which have lower margins. However, there is a potential strategic shift where Sezzle might de-emphasize or eliminate the On-Demand service during the holiday season, which could lead to a higher take rate and reduced credit losses.
Furthermore, data from Yipit indicates a reacceleration of UMS in the third quarter of 2025, suggesting a positive trend in user metrics. The On-Demand service, initially intended to convert new users into subscribers, has not performed as expected, with subscription growth stagnating. Sezzle’s potential move to focus on higher-margin subscription services, such as Premium and Anywhere, by sidelining On-Demand could enhance profitability. Additionally, recent price increases for these subscription services could further bolster revenue, making the stock an attractive buy.
In another report released on September 29, B. Riley Securities also reiterated a Buy rating on the stock with a $111.00 price target.