Financing company Sezzle (SEZL +0.01%) was quite a hit on the stock exchange on Monday, after an analyst initiated coverage of its equity with a hearty buy recommendation. With that breezy tailwind at its back, Sezzle's stock gained nearly 8% on the day.
Buy now, pay whenever
Sezzle, which operates in the currently very popular buy now, pay later (BNPL) space, is now in Keefe, Bruyette & Woods' coverage universe. That morning, analyst Ryan Tomasello launched his tracking of the stock with an outperform (read: buy) recommendation and $85 per share price target. That level is almost 24% higher than the company's most recent closing share price.
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The pundit feels that Sezzle is a unique operator in the BNPL ecosystem, according to reports. It is fusing those offerings with next-generation bank services and a mobile-focused shopping platform.
Sezzle's uniqueness isn't the only aspect of the stock Tomasello finds appealing. He also waxed bullish on its potential for both significant growth and robust profitability, and pointed out that at current valuations, it's rather inexpensive.
NASDAQ: SEZL
Key Data Points
Integration fixation
I'd agree with this assessment. The more successful fintech companies integrate multiple related products and services, the better they are at increasing customer "stickiness" and generating revenue from multiple sources. While the BNPL business still has plenty of development ahead, what I've seen with Sezzle is promising, and at the very least, this makes the stock well worth keeping an eye on.
