Where Duolingo Stands With Analysts

Duolingo DUOL has been analyzed by 8 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $240.12, a high estimate of $282.00, and a low estimate of $160.00. Witnessing a positive shift, the current average has risen by 18.09% from the previous average price target of $203.33.

Investigating Analyst Ratings: An Elaborate Study

In examining recent analyst actions, we gain insights into how financial experts perceive Duolingo. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Duolingo. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Duolingo compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Duolingo's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of Duolingo's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Duolingo analyst ratings.

Delving into Duolingo's Background

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.

Duolingo's Financial Performance

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Duolingo's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 45.42%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Net Margin: Duolingo's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 8.03% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Duolingo's ROE excels beyond industry benchmarks, reaching 1.91%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Duolingo's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.33% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Duolingo's debt-to-equity ratio is below the industry average. With a ratio of 0.04, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

What Are Analyst Ratings?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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