Duolingo jumps after Evercore turns bullish, doubles PT to Street high

Duolingo

01/09/2026 15:48

** Language-learning platform Duolingo's DUOL.O shares up 6% on Tues to $157.28, highest since late Jan, after Evercore upgraded to 'outperform' from 'in line'
** Brokerage hiked PT from $105 to $210, highest on Wall Street, per LSEG, implying ~42% upside to stock's last close
** Analyst team led by Mark Mahaney said in a note they're "materially increasing" estimates in the wake of a proprietary survey, an analysis of current product improvements, new 100 mln (daily active user) EPS sensitivity analysis, 3P tracking of quarter-to-date DAU trends, and "very recent channel checks"
** Mahaney cited his FY27 and FY28 EPS forecasts (GAAP EPS of $3.64 and $5.10) are now 10% and 25% above consensus, respectively, adding the setup "reminds us of the '22 NFLX stock scenario"
** In the NFLX case, video streamer "hit a growth wall" and its shares collapsed 70%, a series of major, successful product changes led to "a virtuous cycle" of fundamental improvements, positive estimate revisions, and "dramatic share price outperformance," Mahaney said
** Pittsburgh, Pennsylvania-based DUOL last month forecast current qtr rev slightly below Street expectations, and reported DAU, a key measure of engagement, grew 23% yr/yr to 58.7 mln in Q2
** Avg rating of 25 brokerages covering DUOL is "hold"; median PT $127.50
** With move on Tues, stock down 10% YTD, lagging ~13% advance in the Nasdaq .IXIC

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))