Duolingo downgraded to Neutral from Buy at BofA

BofA downgraded Duolingo (DUOL) to Neutral from Buy with a price target of $100, down from $250. Q4 results “appeared to meet expectations,” but management guided to calendar year 2026 bookings growth of 10%-12% year-over-year, which was “a big surprise” compared to the Street and BofA estimates of 21% and 24%, respectively. The firm says following the earnings and guidance that BofA’s original growth thesis is “disproved” and management’s articulated growth thesis “could take long to play out.”