SEZL Should I Buy
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Sezzle Inc. (SEZL) is not a strong buy for a beginner, long-term investor at the moment. While the company has shown impressive financial growth and positive news catalysts, the technical indicators suggest the stock is overbought, and the short-term trend indicates potential downside. Additionally, the absence of strong trading signals from Intellectia Proprietary Trading Signals and mixed analyst ratings further support a cautious approach.
The MACD is positive and expanding, indicating bullish momentum. However, the RSI is at 81.045, signaling the stock is overbought. Moving averages are converging, suggesting indecision. Key resistance levels are at 80.865 and 88.341, with support at 68.763 and 56.661. The stock is currently trading near resistance levels, making it less favorable for entry.
Sezzle achieved record Gross Merchandise Volume of $1.2 billion in Q4, with total revenue rising to $129.9 million. The company raised its FY2026 guidance and reported Q4 EPS of $1.21, exceeding estimates. Positive secular trends in the BNPL market and ongoing product expansion are also favorable.
The stock is overbought based on RSI, and short-term trends suggest a potential decline of -7.99% in the next week. Analysts have lowered price targets, citing a more challenging growth environment in 2026 as the impact of prior initiatives moderates.
In 2025/Q3, revenue increased by 66.95% YoY to $116.8 million, net income rose by 72.67% YoY to $26.67 million, and EPS grew by 70.45% YoY to $0.75. Gross margin improved to 85.07%, up 4.05% YoY. The company has demonstrated strong financial growth.
Analysts are mixed. B. Riley lowered the price target to $76 from $111, citing a challenging growth environment. Needham initiated coverage with a Buy rating and an $85 price target, highlighting underappreciated growth and profitability. TD Cowen lowered the price target to $82 from $83 and maintains a Hold rating.
