Analyst Bryan Smilek of J.P. Morgan maintained a Buy rating on Duolingo (DUOL – Research Report), retaining the price target of $410.00.
Bryan Smilek has given his Buy rating due to a combination of factors that highlight Duolingo’s strong market position and growth potential. The company’s mobile-first learning platform, which offers gamified courses in over 40 languages, has established a robust conversion funnel through its freemium model, leading to significant user engagement and brand reputation. Duolingo’s efficient customer acquisition strategy, with approximately 90% of user growth being organic, further strengthens its market presence.
Duolingo is well-positioned to achieve over 20% growth in bookings and revenue, driven by the increasing shift towards online language learning and the company’s focus on product optimization and social-first marketing strategies. The potential for deeper monetization and growth in paid subscriptions, along with improved teaching efficacy, expands Duolingo’s total addressable market. Additionally, the company is expected to make substantial progress towards its long-term adjusted EBITDA target, supported by scale efficiencies and disciplined cost management. Smilek’s price target of $410 by December 2025 reflects Duolingo’s faster revenue growth and higher gross margins compared to its peers.
According to TipRanks, Smilek is a 2-star analyst with an average return of -0.2% and a 46.15% success rate.
In another report released on March 27, D.A. Davidson also maintained a Buy rating on the stock with a $410.00 price target.