Oppenheimer Downgrades Sezzle (SEZL) to Perform on Valuation, Cites Continued Growth Potential

Sezzle Inc. (NASDAQ:SEZL), one of the top 10 best-performing U.S. stocks in June 2026 with a 158% year-to-date surge, faced a downgrade by Oppenheimer on June 29 to 'Perform' from 'Outperform,' citing elevated valuations. Despite this, the firm maintains SEZL's position as one of the fastest gross profit and adjusted EBITDA growers, underpinned by market share gains, BNPL sector expansion, and product innovation. Analysts highlight potential for further EPS guidance upgrades beyond $5.10 and investor anticipation of 2026 EBITDA outperformance.

Oppenheimer Downgrades on Valuation

■Oppenheimer lowered SEZL to 'Perform' from 'Outperform'.

■The downgrade was solely due to its 158% year-to-date stock rally.

■SEZL remains a top grower in gross profit and adjusted EBITDA metrics.

Analysts' Price Targets and Insights

■Northland Capital raised its price target to $170 from $160, retaining 'Outperform'.

■B. Riley increased its target to $141 from $117, emphasizing improved checkout experience via Knot CardSwitcher API integrations with Amazon, Walmart, and Uber.

■Investors expect the API integration to drive 'top-of-wallet' consumer behavior.

Ege Kaan: This downgrade reflects SEZL's valuation outpacing fundamentals, but its marketing ramp and banking charter progress signal strong 2026 potential. AI-focused investors may gravitate toward sectors leveraging regulatory shifts like tariffs.