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Demystifying Duolingo: Insights From 10 Analyst Reviews

Author: Benzinga Insights | May 10, 2024 05:00pm

10 analysts have expressed a variety of opinions on Duolingo (NASDAQ:DUOL) over the past quarter, offering a diverse set of opinions from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 3 3 3 0 1
Last 30D 0 1 0 0 0
1M Ago 1 0 1 0 0
2M Ago 0 1 0 0 0
3M Ago 2 1 2 0 1

Insights from analysts' 12-month price targets are revealed, presenting an average target of $252.3, a high estimate of $282.00, and a low estimate of $190.00. This upward trend is evident, with the current average reflecting a 14.33% increase from the previous average price target of $220.67.

price target chart

Breaking Down Analyst Ratings: A Detailed Examination

The perception of Duolingo by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Arvind Ramnani Piper Sandler Lowers Overweight $265.00 $282.00
Mario Lu Barclays Lowers Equal-Weight $230.00 $243.00
Ryan MacDonald Needham Raises Buy $267.00 $241.00
Bryan Smilek JP Morgan Announces Overweight $270.00 -
Ryan MacDonald Needham Raises Buy $241.00 $210.00
Nat Schindler B of A Securities Raises Neutral $260.00 $230.00
Eric Sheridan Goldman Sachs Raises Sell $190.00 $160.00
Mario Lu Barclays Raises Equal-Weight $243.00 $173.00
Arvind Ramnani Piper Sandler Raises Overweight $282.00 $217.00
Chris Kuntarich UBS Raises Buy $275.00 $230.00

Key Insights:

  • Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Duolingo. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Duolingo compared to the broader market.
  • Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Duolingo's stock. This examination reveals shifts in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Duolingo's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Duolingo analyst ratings.

Unveiling the Story Behind Duolingo

Duolingo Inc is a technology company that develops mobile learning platform to learn languages and is the top-grossing app in the Education category on both Google Play and the Apple App Store. Its products are powered by sophisticated data analytics and artificial intelligence and delivered with class art, animation, and design to make it easier for learners to stay motivated master new material, and achieve their learning goals. Its solutions include The Duolingo Language Learning App, Super Duolingo, Duolingo English Test: AI-Driven Language Assessment, Duolingo For Schools, Duolingo ABC, and Duolingo Math. It has three predominant sources of revenue; time-based subscriptions, in-app advertising placement by third parties, and the Duolingo English Test.

Understanding the Numbers: Duolingo's Finances

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Revenue Growth: Duolingo displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 10.97%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Duolingo's net margin excels beyond industry benchmarks, reaching 16.09%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Duolingo's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.95% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.67%, the company showcases effective utilization of assets.

Debt Management: With a below-average debt-to-equity ratio of 0.08, Duolingo adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding the Relevance of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Posted In: DUOL

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