Morgan Stanley has commenced its analysis of Duolingo (DUOL, Financial), giving it an Overweight rating and setting a price target of $435. This evaluation is based on Duolingo's impressive combination of rapid user base expansion, strong financial margins, and promising potential in generative artificial intelligence, according to insights shared by analyst Nathan Feather.
The financial firm highlights Duolingo’s robust growth strategy, predicting a long-term annual growth potential exceeding 20%. Additionally, Morgan Stanley points to early developments from Duolingo's Max technology as an indicator of even greater future prospects, suggesting a bullish scenario that could push the stock to $530.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 16 analysts, the average target price for Duolingo Inc (DUOL, Financial) is $381.52 with a high estimate of $428.20 and a low estimate of $315.12. The average target implies an upside of 13.43% from the current price of $336.34. More detailed estimate data can be found on the Duolingo Inc (DUOL) Forecast page.
Based on the consensus recommendation from 22 brokerage firms, Duolingo Inc's (DUOL, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Duolingo Inc (DUOL, Financial) in one year is $341.18, suggesting a upside of 1.44% from the current price of $336.34. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Duolingo Inc (DUOL) Summary page.
