A Glimpse Into The Expert Outlook On Duolingo Through 11 Analysts

Throughout the last three months, 11 analysts have evaluated Duolingo DUOL, offering a diverse set of opinions from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts have recently evaluated Duolingo and provided 12-month price targets. The average target is $265.55, accompanied by a high estimate of $310.00 and a low estimate of $183.00. Marking an increase of 1.78%, the current average surpasses the previous average price target of $260.91.

Exploring Analyst Ratings: An In-Depth Overview

The standing of Duolingo among financial experts becomes clear 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: 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: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Duolingo compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

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.

Unraveling the Financial Story of Duolingo

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Duolingo's net margin is impressive, surpassing industry averages. With a net margin of 13.66%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Duolingo's ROE excels beyond industry benchmarks, reaching 3.3%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Duolingo's ROA excels beyond industry benchmarks, reaching 2.21%. This signifies efficient management of assets and strong financial health.

Debt Management: Duolingo's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.07.

The Basics 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.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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