Duolingo initiated with a Neutral at Baird

Baird last night initiated coverage of Duolingo (DUOL) with a Neutral rating and $280 price target The firm says Duolingo has built a “very effective product and a globally recognized brand.” However, Baird hesitates to recommend the shares due to competitive risks in the category. The risks can persist as a share overhang and Duolingo’s valuation is already “robust,” the analyst tells investors in a research note.