Duolingo price target lowered to $500 from $600 at DA Davidson

DA Davidson analyst Wyatt Swanson lowered the firm’s price target on Duolingo (DUOL) to $500 from $600 but keeps a Buy rating on the shares. The firm cites its proprietary analysis of tracking Duolingo course enrollments which indicates that while enrollment data is accelerating in the month of June, the expected Q2 daily active user – DAU – growth beat of 170 bps is a contraction relative to the Q1 DAU growth beat of 350 bps, the analyst tells investors in a research note. The firm adds however that the backlash on social media is a temporary Q2 headwind for Duolingo that will not continue into the second half.