Duolingo user growth needs to rise in Q2 to meet 20% target, says DA Davidson

DA Davidson keeps a Neutral rating and $85 price target on Duolingo (DUOL). According to the firm’s in-house data tracking activity for existing Duolingo users, growth has lost all momentum seen in January and February, with March falling sequentially for the first time since August, the analyst tells investors in a research note. The implication of lost momentum in March suggests that Duolingo needs to grow users by about 1% per month in each of the months of Q2 to reach its 20% y/y growth target, the firm added.