Sezzle (ASX:SZL) share price jumps 26% on Target deal

It has been an incredible day for Sezzle shareholders
The post Sezzle (ASX:SZL) share price jumps 26% on Target deal appeared first on The Motley Fool Australia. –

It certainly has been a fantastic day for the Sezzle Inc (ASX: SZL) share price on Thursday.

In afternoon trade, the buy now pay later (BNPL) provider’s shares are up 22% to $9.15.

At one stage today, the Sezzle share price was up as much as 26% to $9.45.

Why is the Sezzle share price on fire today?

Investors have been bidding the Sezzle share price higher today following the release of a major announcement this morning.

According to the release, Sezzle has successfully concluded its proof of concept with US retail giant Target Corporation.

The proof of concept, which was announced in September 2020, included limited tests with a small portion of guests in two product categories to evaluate the efficacy of the Sezzle platform for Target’s retail operations.

At the time of launch, Sezzle warned that it was preliminary in nature and did not represent any guarantee of a future commercial contract.

Positively, the proof of concept appears to have gone very well, leading to the two parties signing a three-year agreement.

Under the agreement, Sezzle’s product will be used in-store and across Target’s digital platforms. This will provide shoppers with access to interest-free payment plans for purchases made at Target.

Deal could be a “step change”

Analysts at Ord Minnett responded to the news by suggesting that it could be a step change for Sezzle.

It notes that if only a small fraction of Target’s revenue went through the Sezzle platform, it would still make a material difference to the company’s volumes and revenue.

Ord Minnett also believes that having a top ten US retailer on its books will be a boost to customer numbers.

At present, the broker has a buy rating and $11.50 price target on its shares. However, it is reviewing its price target following this news. This could mean a higher price target is put on the Sezzle share price in the coming days.

The post Sezzle (ASX:SZL) share price jumps 26% on Target deal appeared first on The Motley Fool Australia.

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