DA Davidson Lifts Duolingo (DUOL) Price Target, Keeps Buy Rating

On Friday, May 30, DA Davidson analyst Wyatt Swanson raised the price target on Duolingo, Inc. (NASDAQ:DUOL) from $470 to $600 and reiterated a “Buy” rating.

This decision came after a proprietary analysis of Duolingo course enrollments, which the analyst uses to measure the company’s user growth.

DA Davidson Upgrades Duolingo (DUOL) Price Target, Keeps Buy Rating

A close up macro image of someone using a mobile device to learn a new language.

Swanson’s analysis shows that Duolingo, Inc.’s (NASDAQ:DUOL) daily active user (DAU) growth in the second quarter is exceeding the consensus forecast of 43.7% year-over-year growth. It is also slightly beating the company’s own guidance of 40-45% DAU growth, which Duolingo, Inc.’s (NASDAQ:DUOL) management shared during the Q1 earnings report.

The analyst expressed confidence that Duolingo, Inc.’s (NASDAQ:DUOL) performance can exceed current consensus estimates. The Buy rating and the increased price target reflect Swanson’s belief in the company’s strong growth potential.

Duolingo, Inc. (NASDAQ:DUOL) is an educational technology company that is known for its mobile learning platform that provides fun ways to learn different languages. It is available in more than 100 countries around the world.

While we acknowledge the potential of DUOL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DUOL and that has’ a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.