Duolingo initiated with a Buy at UBS

UBS initiated coverage of Duolingo with a Buy rating and $195 price target. Duolingo has a best-in-class brand within the language learning space which is still early in its online penetration ramp, the analyst tells investors in a research note. The firm says the company has a path to accelerate engagement and payer penetration trends by leaning into generative artificial intelligence-driven content creation.