Scotiabank has revised its price target for Duolingo (DUOL, Financial), reducing it from $425 to $405, while maintaining an Outperform rating on the educational technology company's stock. Despite the adjustment, Scotiabank remains optimistic about Duolingo's potential growth this year.
Entering the first quarter, Duolingo reported a slight deceleration in the growth of its daily average users. However, engagement with its premium features among English learners is notably strong, occurring at twice the rate seen with other users. This trend is complemented by the expansion of the company's Max product line.
The critical consideration for Duolingo, according to Scotiabank, is its capacity to continue increasing the average revenue per user while keeping its costs under control. Successfully achieving this balance could provide opportunities for revenue and profitability improvements throughout the year.
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 $380.27 with a high estimate of $428.20 and a low estimate of $315.12. The average target implies an upside of 13.06% 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.
