Will A TikTok Ban Impact Duolingo's 240M-Plus Likes? Analyst Says 'No,' Sees 25% Upside
Portfolio Pulse from Surbhi Jain
JPMorgan analyst Bryan M. Smilek maintains an Overweight rating on Duolingo Inc (NASDAQ:DUOL) with a price target of $270, indicating a 25% upside. Despite concerns over a potential TikTok ban in the U.S., Smilek believes Duolingo's growth will not be affected due to its focus on product innovation and word of mouth for user acquisition. He highlights Duolingo's strong user and paid subscription growth, revenue expansion, and margin improvement, projecting significant growth and scalability for the company.
March 19, 2024 | 1:29 pm
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JPMorgan analyst Bryan M. Smilek maintains an Overweight rating on Duolingo with a price target of $270, indicating a 25% upside. He believes Duolingo's growth will not be affected by a potential TikTok ban, highlighting the company's focus on product innovation and word of mouth for user acquisition.
The positive outlook from JPMorgan's analyst, including a significant price target increase, suggests strong confidence in Duolingo's growth trajectory. The emphasis on Duolingo's resilience against potential external disruptions like a TikTok ban, alongside its strategic focus on product innovation and marketing, underpins the expected positive impact on the stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100