Shares of Duolingo Inc. (NASDAQ: DUOL) climbed 7% on Tuesday after DA Davidson upgraded the stock to buy from neutral, citing improving monetization and an extended growth runway.
Analyst Wyatt Swanson raised the price target to $160 from a prior level, while maintaining a positive outlook on the company’s ability to accelerate daily active users and align bookings with user growth. The upgrade follows an assessment that Duolingo’s product enhancements and marketing adjustments have been undervalued by investors.
Swanson noted that while market risks related to user growth deceleration and monetization challenges have historically been priced in, Duolingo appears to be approaching a turning point. The analyst’s bullish stance reflects confidence in the company’s long-term trajectory despite recent concerns over core business metrics.
The upgrade and price target adjustment were announced on Tuesday, with Duolingo’s stock reacting positively to the revised rating.
