Duolingo price target lowered to $405 from $425 at Scotiabank

Scotiabank lowered the firm’s price target on Duolingo (DUOL) to $405 from $425 and keeps an Outperform rating on the shares. The company entered Q1 with a “clean setup,” with daily average user growth slowing a bit, but Max expanding and English learners engaging with premium features at two times the rate of other users, the analyst tells investors. The firm believes the “real question” is whether the company can keep lifting average revenue per user while managing costs, which, if so, Scotiabank sees room for both top- and bottom-line upside this year.