Duolingo Shares Rise After Evercore ISI Rating Upgrade

Duolingo Inc shares rose 6.5% in premarket trading on Tuesday after receiving a rating upgrade from Evercore ISI. Analyst Mark Mahaney raised the stock to Outperform from In Line and established a price target of $210, citing proprietary surveys, channel checks, and recent product improvements.

Mahaney compared the company's current trajectory to the recovery experienced by Netflix in 2022, although he noted that Duolingo possesses less scale and a less attractive valuation.

Simultaneously, DA Davidson analyst Wyatt Swanson increased his price target for the company to $175 from $160 while maintaining a Buy rating. Swanson reported that internal tracking of 170,000 users showed strengthening week-over-week daily active user growth, suggesting that third-quarter growth could reach between 25.6% and 27.6% year-over-year.