Duolingo initiated with a Hold at Jefferies

Jefferies initiated coverage of Duolingo (DUOL) with a Hold rating and $370 price target The analyst believes Duolingo’s track record of “attractive growth” and upside to consensus justifies a premium multiple. However, slowing payer growth among casual learners makes the bull case increasingly reliant on expansion into intermediate learners, which could prove challenging given Max diverges from Duolingo’s core approach to language learning, the analyst tells investors in a research note. As such, Jefferies sees limited multiple expansion and low visibility into intermediate learners.