JPMorgan Raises Duolingo (DUOL) Price Target as Growth Accelerates

On June 4, JPMorgan analysts raised their price target for Duolingo Inc. (NASDAQ:DUOL) from $500 to $580 while keeping an Overweight rating. The bullish stance stems from Duolingo’s effectiveness as a mobile-first learning platform offering gamified courses in over 40 languages, plus math and music.

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According to the analysts, the company’s freemium model successfully converts users into subscribers. This contributes to a strong brand reputation and efficient customer acquisition. The analysts stated further that Duolingo demonstrates efficiency through an impressive 72.25% gross profit margin and the fact that approximately 90% of user growth occurs organically.

JPMorgan expects Duolingo to achieve over 20% growth in both bookings and revenue. This will be possible, the firm says, due to the shift towards online language learning, enhanced user growth through product improvements, and increased monetization. The analysts see potential for the company to expand its addressable market by improving teaching efficacy, particularly in advanced English learning.

The firm also anticipates meaningful progress towards Duolingo’s long-term adjusted EBITDA target of 30-35%. This progress, they wrote, will be supported by scale efficiencies and cost management. The analysts’ optimistic outlook aligns with Duolingo’s Q1 2025 earnings results, in which the company posted a 38% increase in bookings and a 49% rise in daily active users (DAUs).

Duolingo Inc. (NASDAQ:DUOL) is an education technology company that operates the world’s most popular language-learning app. It offers courses in over 40 languages, including English, Spanish, French, and Japanese, using AI-driven personalized learning. The company also provides the Duolingo English Test, an online language proficiency exam.

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