Duolingo upgraded to Buy at BofA on underappreciated entertainment value

BofA analyst Curtis Nagle upgraded Duolingo (DUOL) to Buy from Neutral with a price target of $250, down from $301, as the firm believes its value proposition as an entertainment product is not reflected in growth forecasts. Duolingo’s rapid-fire, bite-sized lesson plans provide superior entertainment value than the majority of mobile gaming apps, contends the analyst, who also thinks Duolingo’s 95% annual subscriber rate, and 23% payer/DAU ratio, demonstrate the app’s superior value proposition than mobile games.