16 Most Favored Financial Pure Plays Under $100 According to Hedge Funds

11. Sezzle Inc. (NASDAQ:SEZL)

Sector/Industry: Financial (Credit Services)

Share Price: $65.01

Potential Upside: 55.4%

Number of Hedge Fund Holders: 22

Sezzle Inc. (NASDAQ:SEZL) is one of the best financial pure plays under $100 according to hedge funds.

On December 23, Northland Securities analyst Michael Grondahl reaffirmed his bullish view on Sezzle Inc. (NASDAQ:SEZL). Although he reduced his price target from $130 to $110, Grondahl still anticipates over 69% upside for the stock.

Grondahl held discussions with Sezzle’s (NASDAQ:SEZL) management, who plan to pivot back towards subscription-based offerings such as Anywhere and Premium. This strategic shift offers a more stable revenue base in the long run compared with On-Demand offerings. It also leads to superior yields, better customer engagement, and enhanced customer lifetime value.

The analyst noted that the company will continue offering on-demand products to price-sensitive and lower-credit users. Such a mix will ensure a significant improvement in the company’s risk profiling and underwriting discipline. The analyst also acknowledged Sezzle’s (NASDAQ:SEZL) data-driven methodical approach that facilitates decision-making based on weighted lifetime value for different products and segments.

The broader analyst coverage does indicate an optimistic view of Sezzle Inc. (NASDAQ:SEZL). As of December 30 closing, the estimated 1-year average price target for the stock stands at $101, which leads to more than 55% upside potential. The stock received three analyst ratings, of which 2 were Buys, and 1 was Hold.

Sezzle Inc. (NASDAQ:SEZL) is a financial technology company that operates a “buy now pay later platform.” It allows consumers to make purchases with flexible payment terms involving one upfront payment followed by four interest-free installments. These payments are spread over a six-week period, which boosts the consumer’s purchasing power.