Morgan Stanley analyst Nathan Feather maintained a Buy rating on Duolingo today and set a price target of $500.00.
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Nathan Feather has given his Buy rating due to a combination of factors that highlight Duolingo’s strong performance and growth potential. Despite concerns about user trends, Duolingo’s daily active users (DAUs) exceeded expectations in the second quarter, demonstrating resilience and the strength of underlying growth drivers. The temporary decline in social media sentiment appears to have been a short-lived issue, and the company’s structural tailwinds remain robust.
Nathan Feather also points out that Duolingo is successfully executing its business strategy, with positive developments in monetization and margin improvements. The company is positioned for further growth with upcoming initiatives such as the energy rollout, expansion in China, and new product offerings. These factors, combined with a raised price target from $480 to $500, underpin the Buy rating as Duolingo continues to perform well against its bull thesis.
In another report released today, J.P. Morgan also reiterated a Buy rating on the stock with a $515.00 price target.