Where Duolingo Stands With Analysts

Throughout the last three months, 7 analysts have evaluated Duolingo DUOL, offering a diverse set of opinions from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $247.86, along with a high estimate of $271.00 and a low estimate of $183.00. This current average has decreased by 5.15% from the previous average price target of $261.33.

Breaking Down Analyst Ratings: A Detailed Examination

A clear picture of Duolingo's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below 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: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Duolingo compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Duolingo's stock. This analysis reveals shifts in analysts' expectations over time.

Capture valuable insights into Duolingo's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Duolingo analyst ratings.

About 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.

Financial Milestones: Duolingo's Journey

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Over the 3 months period, Duolingo showcased positive performance, achieving a revenue growth rate of 40.59% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Duolingo's net margin excels beyond industry benchmarks, reaching 13.66%. 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 3.3% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Duolingo's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.21%, the company showcases efficient use of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.07, Duolingo adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding the Relevance of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

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.