Baird Initiates Duolingo, Inc. (DUOL) at Neutral with $280 Target

Duolingo, Inc. (NASDAQ:DUOL) is among the best education stocks to buy right now. Vikram Kesavabhotla, an analyst at Baird, has initiated coverage on Duolingo, Inc. (NASDAQ:DUOL) with a ‘Neutral’ rating and a price target of $280, implying a surge of about 3.3% from the current level.

While the analyst affirmed the company’s effective product development and positioning in the language learning market, Duolingo, Inc. (NASDAQ:DUOL) still has some competitive risks that make the investors considerably cautious. Additionally, the firm highlighted the company’s dedication to innovation and fulfilling customer needs.

If we consider the one- and three-year returns, Duolingo, Inc. (NASDAQ:DUOL) has outperformed the market by 11.20% and 126.93%, respectively. Much of this outperformance is attributed to AI, which has not only delivered real operating leverage but also enabled rapid course expansion and declining costs. All in all, one thing the company certainly has is growth potential that can make it the next exceptional consumer platform.

Duolingo, Inc. (NASDAQ:DUOL) is a Pennsylvania-based mobile learning platform operating in the United States, the United Kingdom, and internationally. Incorporated in 2011, the company offers courses in 40 different languages.

While we acknowledge the potential of DUOL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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