Bullish indicating open at $55-$60, IPO prices at $37
On Wednesday, JPMorgan analysts increased the price target for Duolingo Inc. (NASDAQ: NASDAQ:DUOL) to $580 from $500, while maintaining an Overweight rating. With the stock currently trading at $513, InvestingPro analysis suggests the company is trading above its Fair Value. The analysts highlighted Duolingo’s position as a leading mobile-first learning platform, offering gamified courses in over 40 languages, as well as in math and music.
The analysts noted that Duolingo’s freemium model effectively converts users into subscribers, contributing to its strong brand reputation and efficient customer acquisition. This efficiency is reflected in the company’s impressive 72.25% gross profit margin. Approximately 90% of Duolingo’s user growth is organic, driven by its focus on product development and gamification.
Duolingo is anticipated to achieve over 20% growth in bookings and revenue. The company benefits from a shift towards online language learning, enhanced user growth through product improvements and social marketing strategies, and increased monetization.
The analysts also pointed out the potential for Duolingo to expand its total addressable market by improving teaching efficacy, particularly in advanced English learning. They expect meaningful progress towards the company’s long-term adjusted EBITDA target of 30-35%, supported by scale efficiencies and cost management.
In other recent news, Duolingo Inc. has seen several analysts revise their stock price targets, reflecting confidence in the company’s growth trajectory. DA Davidson analyst Wyatt Swanson increased the price target for Duolingo to $600, citing stronger-than-expected daily active user growth, which surpassed both consensus estimates and the company’s own guidance. Similarly, Scotiabank (TSX:BNS)’s Nat Schindler also adjusted Duolingo’s price target to $600, highlighting the company’s success in monetizing its user base and potential benefits from changes in App Store policies. Schindler noted that these developments could lead to a significant expansion in profit margins by 2026.
JPMorgan maintained its $500 price target, emphasizing Duolingo’s vast market opportunities and potential for sustained user growth. The firm pointed out the company’s strategic initiatives to expand its global penetration and enhance its content offerings. Earlier, Scotiabank had raised the price target to $470, following Duolingo’s impressive performance in the first quarter of 2025, where the company reported a 38% increase in bookings and a 49% rise in daily active users. DA Davidson had also previously set a $470 target after Duolingo’s first-quarter results exceeded expectations in revenue and adjusted EBITDA.
Duolingo’s management remains optimistic, noting no signs of consumer softness despite economic concerns. The company’s strategy, including product diversification and AI-driven features, appears resilient in maintaining growth momentum. These recent developments underscore the positive outlook analysts have for Duolingo’s financial and market performance.
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