D.A. Davidson upgraded DUOL to "buy" from "neutral"
Shares of Duolingo Inc (NASDAQ:DUOL) are up 4.3% at $135.71 before the open, after D.A. Davidson upgraded the language-learning name to "buy" from "neutral" and hiked its price target to $160 from $130. The firm said Duolingo is nearing a turning point after the market priced in risks surrounding slowing daily active users and monetization.
The bull note stands out against a largely cautious analyst backdrop. Several firms have downgraded the stock this year, including BofA Securities earlier this month. Of the 25 analysts covering DUOL, 21 carry a "hold" or worse rating, compared to just four "buy" or better recommendations. Plus, the 12-month consensus price target of $124.68 is a 4.2% discount to last night's close.
Heading into today, the stock is down 25.8% year to date. The 10-day moving average has helped support the shares since early May as the stock slowly rises -- up 14.9% in the last three months.
Options are affordably priced, per the DUOL's Schaeffer's Volatility Index (SVI) of 52% that stands in the lowest percentile of its annual range.