JMP Securities Upgrades Duolingo Inc. (DUOL) to Market Outperform

JMP Securities analyst Andrew Boone upgraded Duolingo Inc. (NASDAQ: DUOL) from Market Perform to Market Outperform with a price target of $260.00.

The analyst comments: "We are upgrading shares of Duolingo to Market Outperform from Market Perform and establishing a $260 price target as we see multiple catalysts that can sustain growth while shares are now trading for 19.9x our 2026 “Blue Sky” FCF. Specifically, we believe a broader
rollout of Max, optimization of subscription tiers and Family Plan, and the launch of a conversational experience are material catalysts that can continue to drive growth going forward. This as Math and Music are medium-term drivers that we believe can represent significant businesses on their own over time. While we acknowledge we still cannot size the TAM, user growth decelerated last quarter, and AI is a medium-term risk, the company is the category winner, in our view, with structural moats around freemium, data, and a growing brand. With shares down ~21% YTD and ~27% since reporting earnings, valuation is now more reasonable as we are taking advantage of this pullback and upgrading."

For an analyst ratings summary and ratings history on Duolingo Inc. click here. For more ratings news on Duolingo Inc. click here.

Shares of Duolingo Inc. closed at $178.40 yesterday.

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