Duolingo's Stock Price Target Cut by Morgan Stanley to $480, Analyst Maintains "Overweight" Rating

Morgan Stanley has lowered its price target for Duolingo (DUOL) to $480, down from $515, maintaining an "Overweight" rating. The adjustment reflects revised market expectations and projections for the stock. Analysts predict an average target price of $484.66 with a high estimate of $600 and a low estimate of $354. The average target implies a 25.13% upside from the current price of $387.34.

Morgan Stanley has revised its price target for Duolingo (DUOL) to $480, a significant drop from the previous target of $515. The investment bank maintains an "Overweight" rating on the stock, indicating a bullish outlook. This adjustment reflects updated market expectations and projections for the stock.

The average target price for Duolingo, as calculated by MarketBeat, is $484.66, with a high estimate of $600 and a low estimate of $354. This average target implies a potential upside of 25.13% from the current price of $387.34 [1].

Duolingo has been experiencing robust growth, driven by a surge in user engagement and the addition of new courses using AI technology. The company reported strong financial performance in the first quarter of 2025, with revenue exceeding expectations. The company's daily and monthly active users, as well as its subscriber base, have seen significant growth [2].

Despite the price target reduction, Morgan Stanley's "Overweight" rating suggests that the firm believes Duolingo has strong long-term growth potential. The company's focus on AI technology and its expanding course offerings position it well to capture a larger share of the language learning market.

References:
[1] https://www.marketbeat.com/instant-alerts/duolingo-nasdaqduol-given-new-48000-price-target-at-morgan-stanley-2025-07-08/
[2] https://www.timothysykes.com/news/duolingo-inc-duol-news-2025_05_02/