Morgan Stanley Cuts Duolingo (DUOL) PT to $245, Cites Tactical Caution Toward Upcoming Earnings

Duolingo Inc. (NASDAQ:DUOL) is one of the best IPO stocks to buy right now. On February 3, Morgan Stanley reduced its price target for Duolingo to $245 from $275 while maintaining an Overweight rating. As this sentiment was posted, the firm expressed tactical caution regarding the upcoming earnings report.

The firm also suggested that a focus on user growth may result in initial fiscal year 2026 bookings guidance falling below Street estimates. Despite this, Morgan Stanley noted that daily active user growth is stabilizing and that ongoing initiatives to boost acquisition and retention should strengthen performance.

On January 27, DA Davidson also lowered its price target for Duolingo Inc. (NASDAQ:DUOL) to $170 from $205 with a Neutral rating. Based on in-house data tracking over 170,000 users, the firm noted that while January saw its strongest month-over-month increase since July, projected daily active users for Q1 remain approximately 4% below current consensus estimates.

Duolingo Inc. (NASDAQ:DUOL) operates as a mobile learning platform in the US, the UK, and internationally. The company offers courses in 40 different languages through its Duolingo app.

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Disclosure: None. This article is originally published at Insider Monkey.