Morgan Stanley lowered the firm’s price target on Duolingo (DUOL) to $245 from $275 and keeps an Overweight rating on the shares. The firm is “tactically cautious” on the upcoming earnings report as it believes increased prioritization of user growth likely leads initial FY26 bookings guidance below Street estimates. However, DAU growth has already shown signs of stabilization while efforts to improve user growth should drive improved acquisition and retention, the analyst added in a Q4 preview.
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