Duolingo Inc. (DUOL) PT Raised to $271 at Piper Sandler

Piper Sandler analyst Arvind Ramnani raised the price target on Duolingo Inc. (NASDAQ: DUOL) to $271.00 (from $265.00) while maintaining a Overweight rating.

The analyst commented, "Duolingo’s 2Q bookings of 38% y/y growth came in well ahead of consensus (+31%) driven by 47% increase in subscription bookings. User engagement re-accelerated to 59% DAU growth after taking a breather last quarter. We expect that the re-acceleration in DAU growth will assuage investor skepticism on moderating engagement. Further, paid subscribers continued to expand to 8M (+8.1% q/q). The company delivered these impressive top-line results while expanding margins, with EBITDA of $48M (27% margins) vs. Street’s 22%. The company raised full year targets modestly ahead of 2Q performance, which in our view is due to conservatism. As we highlighted in our recent note, DUOL presents an attractive opportunity given impressive top and bottom line metrics, powered by product enhancements that are driving accelerating engagement. We are buyers of DUOL at these levels (7x NTM EV/S) and raise our PT to $271."

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