Assessing Duolingo: Insights From 11 Financial Analysts

During the last three months, 11 analysts shared their evaluations of Duolingo (NASDAQ:DUOL), revealing diverse outlooks from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

	Bullish	Somewhat Bullish	Indifferent	Somewhat Bearish	Bearish
Total Ratings	5	5	1	0	0
Last 30D	0	0	0	0	0
1M Ago	3	2	0	0	0
2M Ago	1	1	0	0	0
3M Ago	1	2	1	0	0

Analysts have recently evaluated Duolingo and provided 12-month price targets. The average target is $274.18, accompanied by a high estimate of $355.00 and a low estimate of $183.00. This upward trend is apparent, with the current average reflecting a 6.38% increase from the previous average price target of $257.73.

Investigating Analyst Ratings: An Elaborate Study

The perception of Duolingo by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst	Analyst Firm	Action Taken	Rating	Current Price Target	Prior Price Target
Chris Kuntarich	UBS	Raises	Buy	$355.00	$225.00
Bryan Smilek	JP Morgan	Raises	Overweight	$303.00	$255.00
Nat Schindler	B of A Securities	Raises	Buy	$298.00	$292.00
Andrew Boone	JMP Securities	Raises	Market Outperform	$275.00	$260.00
Ryan MacDonald	Needham	Raises	Buy	$310.00	$245.00
Wyatt Swanson	DA Davidson	Maintains	Buy	$250.00	$250.00
Arvind Ramnani	Piper Sandler	Maintains	Overweight	$271.00	$271.00
Mario Lu	Barclays	Lowers	Equal-Weight	$183.00	$230.00
Bryan Smilek	JP Morgan	Lowers	Overweight	$255.00	$275.00
Ryan MacDonald	Needham	Lowers	Buy	$245.00	$267.00
Arvind Ramnani	Piper Sandler	Raises	Overweight	$271.00	$265.00

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Duolingo. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Duolingo compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Duolingo's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Duolingo's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Duolingo analyst ratings.

About Duolingo

Duolingo Inc is a technology company that develops mobile learning platform to learn languages and is the top-grossing app in the Education category on both Google Play and the Apple App Store. Its products are powered by sophisticated data analytics and artificial intelligence and delivered with class art, animation, and design to make it easier for learners to stay motivated master new material, and achieve their learning goals. Its solutions include The Duolingo Language Learning App, Super Duolingo, Duolingo English Test: AI-Driven Language Assessment, Duolingo For Schools, Duolingo ABC, and Duolingo Math. It has three predominant sources of revenue; time-based subscriptions, in-app advertising placement by third parties, and the Duolingo English Test.

Financial Milestones: Duolingo's Journey

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Duolingo's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 40.59%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Net Margin: Duolingo's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 13.66% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Duolingo's ROE stands out, surpassing industry averages. With an impressive ROE of 3.3%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Duolingo's ROA stands out, surpassing industry averages. With an impressive ROA of 2.21%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Duolingo's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.07.

Analyst Ratings: Simplified

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.