Duolingo (DUOL) Receives Bullish Outlook from Morgan Stanley

Summary:

  • Morgan Stanley sets a bullish price target for Duolingo (DUOL, Financial) at $435, emphasizing strong user growth and AI integration.
  • Consensus among analysts shows a modest 2.82% upside potential with an average target price of $380.27.
  • The GF Value suggests a possible 7.75% downside, offering a mixed valuation perspective for investors.

Morgan Stanley's Bullish Outlook on Duolingo

Morgan Stanley has raised the stakes for Duolingo (DUOL) with an ambitious price target of $435. This optimism is fueled by the company's impressive user growth, widening profit margins, and promising potential in artificial intelligence. The firm projects a robust 26% annual revenue growth over the next five years. Notably, Duolingo's shares have already appreciated by approximately 10%, reflecting investor confidence.

Wall Street Analysts' Forecasts

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Examining the insights from 16 analysts, the average price target for Duolingo Inc (DUOL, Financial) stands at $380.27, with a high estimate of $428.20 and a low of $315.12. This average suggests a potential upside of 2.82% from the current trading price of $369.84. For those seeking more comprehensive forecast data, visit the Duolingo Inc (DUOL) Forecast page on GuruFocus.

Brokerage Recommendations and Insights

Duolingo Inc (DUOL, Financial) enjoys a favorable position with an average brokerage recommendation of 2.3, indicating an "Outperform" status from 22 brokerage firms. The rating scale offers a range from 1, representing a "Strong Buy," to 5, which signifies a "Sell."

Understanding the GF Value

According to GuruFocus estimates, the projected GF Value for Duolingo Inc in one year is $341.18. This presents a potential downside of 7.75% from the current market price of $369.84. The GF Value represents GuruFocus' assessment of the stock's fair trading value, based on its historical trading multiples, past business growth, and anticipated future performance. For further detailed analysis, the Duolingo Inc (DUOL, Financial) Summary page provides in-depth insights.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.