Sezzle Inc. (NASDAQ:SEZL) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Sezzle has also found favour with investors, with the stock up a magnificent 55% to US$86.50 over the past week. Could this upgrade be enough to drive the stock even higher?

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After this upgrade, Sezzle's twin analysts are now forecasting revenues of US$438m in 2025. This would be a substantial 33% improvement in sales compared to the last 12 months. Statutory earnings per share are forecast to be US$3.26, approximately in line with the last 12 months. Prior to this update, the analysts had been forecasting revenues of US$352m and earnings per share (EPS) of US$1.29 in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for Sezzle NasdaqCM:SEZL Earnings and Revenue Growth May 13th 2025

With these upgrades, we're not surprised to see that the analysts have lifted their price target 47% to US$90.50 per share.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Sezzle's growth to accelerate, with the forecast 47% annualised growth to the end of 2025 ranking favourably alongside historical growth of 34% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Sezzle is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Sezzle.

Analysts are definitely bullish on Sezzle, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including concerns around earnings quality. You can learn more, and  discover the 1 other risk we've identified, for free on our platform here.

Story Continues

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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