Sezzle Inc. shares rose in pre-market trading on August 10. TD Cowen upgraded the stock to Buy from Hold with a $165 price target. This move follows a 34% share price decline on August 7.
The buy-now-pay-later firm reported second-quarter earnings of $1.13 per share. Revenue reached $149.7 million, surpassing consensus estimates. Sezzle also increased its 2026 earnings guidance to $5.25 per share.
Investors initially sold off the stock due to concerns over a measured growth outlook for the second half of the year. TD Cowen analysts suggested the market reaction was excessive and expect the upgrade to stabilize the stock.