JPMorgan cuts Duolingo target, says buy on pullback

JPMorgan analyst Bryan Smilek lowered the firm’s price target on Duolingo (DUOL) to $500 from $580 and keeps an Overweight rating on the shares as part of a Q2 earnings preview. The firm says the stock remains “controversial” with cautious investor sentiment heading into the Q2 report. The stock is down 30% since the highs on May 14 by due to concerns around third party data that has suggested greater than expected user growth deceleration, slowing subscription bookings growth and an uptick in Max churn, the analyst tells investors in a research note. JPMorgan, however, remains positive on Duolingo’s “secular leadership position.” It recommends buying the stock on the selloff.