Duolingo initiated with an Overweight at Morgan Stanley

Morgan Stanley analyst Nathan Feather initiated coverage of Duolingo (DUOL) with an Overweight rating and $435 price target Duolingo has the “rare combination” of rapid user growth, strong and expanding margins, and clear generative artificial intelligence upside, the analyst tells investors in a research note. The firm says that with a “durable, multi-faceted growth algorithm,” it sees a “long runway” for over 20% growth. Morgan Stanley believes the early Max “green shoots” put its $530 “bull case into play.”