Duolingo (DUOL – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Ryan MacDonald from Needham reiterated a Buy rating on the stock and has a $400.00 price target.
Ryan MacDonald has given his Buy rating due to a combination of factors, including Duolingo’s impressive performance in the fourth quarter, where both revenue and earnings exceeded expectations. The company experienced significant growth in daily active users and saw a notable increase in subscription bookings, largely attributed to the successful launch of its premium-priced Duolingo Max subscription tier and a better mix in its Family Plan offerings.
Despite a less favorable adjusted EBITDA forecast for fiscal year 2025, MacDonald is optimistic about Duolingo’s strategic investments in enhancing its AI-driven Video Call functionality, which are expected to bolster long-term success. He perceives the company’s initial revenue guidance as conservative, suggesting potential for continued outperformance. Consequently, MacDonald views the current dip in stock price as a buying opportunity, anticipating future gains.
MacDonald covers the Technology sector, focusing on stocks such as Yext, Zeta Global Holdings Corp, and Duolingo. According to TipRanks, MacDonald has an average return of 7.9% and a 48.19% success rate on recommended stocks.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $390.00 price target.