10 Analysts Assess Duolingo: What You Need To Know

In the latest quarter, 10 analysts provided ratings for Duolingo DUOL, showcasing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $386.0, a high estimate of $410.00, and a low estimate of $330.00. Witnessing a positive shift, the current average has risen by 7.82% from the previous average price target of $358.00.

Decoding Analyst Ratings: A Detailed Look

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: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Duolingo. This information provides a snapshot of how analysts perceive 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 provide insights into price targets, offering estimates for the future value of Duolingo's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Duolingo's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Duolingo analyst ratings.

Get to Know Duolingo Better

Duolingo Inc is a technology company that develops a 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 four predominant sources of revenue; time-based subscriptions, in-app advertising placement by third parties, and the Duolingo English Test, and In-App Purchases.

A Deep Dive into Duolingo's Financials

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Over the 3 months period, Duolingo showcased positive performance, achieving a revenue growth rate of 38.79% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Duolingo's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 6.64%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Duolingo's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.69% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Duolingo's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.1%, the company may face hurdles in achieving optimal financial performance.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.07.

The Significance of Analyst Ratings Explained

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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