Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com - JPMorgan raised its price target on Duolingo Inc. (NASDAQ:DUOL) to $515.00 from $500.00 on Thursday, while maintaining an Overweight rating on the language learning platform. The company, currently valued at $20.7 billion, has seen its stock surge over 112% in the past year, with analyst price targets ranging from $390 to $600.
The investment bank cited Duolingo’s generative AI innovation, stabilizing daily active user trends, and deepening monetization of its Max subscription tier as key factors behind the increased target. According to InvestingPro data, the company maintains impressive gross profit margins of 72.25% and has achieved revenue growth of 39.14% over the last twelve months.
JPMorgan projects 2025/2026 average growth of 26% for foreign exchange neutral bookings, 44% for adjusted EBITDA, 49% for GAAP earnings per share, and 34% for free cash flow.
The new December 2026 price target of $515 is based on approximately 44.5 times the company’s estimated 2027 free cash flow of $553 million.
JPMorgan remains bullish on Duolingo’s adjusted EBITDA margin expansion and sees potential upside to the company’s 2025 guidance.
In other recent news, Duolingo reported impressive second-quarter 2025 earnings, significantly outperforming market expectations. The company achieved earnings per share of $0.91, surpassing the forecasted $0.58, and generated revenue of $252.3 million, exceeding the anticipated $240.73 million. This strong financial performance was driven by a 9% increase in bookings, supported by foreign exchange benefits and robust advertising revenue. Analysts at Needham reiterated their Buy rating with a $460 price target, highlighting better-than-expected subscriber additions and average revenue per user growth. DA Davidson also maintained a Buy rating with a $500 price target, indicating confidence in Duolingo’s future potential. Wolfe Research and Raymond (NSE:RYMD) James both upheld their existing ratings of Peerperform and Market Perform, respectively, following the company’s strong quarterly results. These developments reflect a positive outlook for Duolingo, as it continues to demonstrate strong financial performance and growth potential.
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