Duolingo (DUOL – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Curtis Nagle from Bank of America Securities maintained a Hold rating on the stock and has a $375.00 price target.
Curtis Nagle has given his Hold rating due to a combination of factors influencing Duolingo’s stock performance. The company has shown strong first-quarter data and favorable foreign exchange conditions, which suggest potential upside to the current estimates. However, there is caution regarding the macroeconomic environment’s volatility, which could impact subscriber trends throughout the year.
Despite Duolingo’s high-quality growth and relative resilience in economic downturns, its shares are trading at a significant premium compared to other high-growth subscription services. This premium valuation, combined with a challenging macroeconomic backdrop, is likely to limit the potential for earnings surprises and multiple expansions. As a result, Nagle maintains a Neutral rating with a price objective of $375, reflecting these balanced considerations.
According to TipRanks, Nagle is an analyst with an average return of -3.0% and a 47.83% success rate. Nagle covers the Consumer Cyclical sector, focusing on stocks such as Wayfair, ACV Auctions, and RH.
In another report released on April 10, Jefferies also maintained a Hold rating on the stock with a $360.00 price target.