Duolingo price target lowered to $245 from $260 at BofA

BofA lowered the firm’s price target on Duolingo to $245 from $260 and keeps a Neutral rating on the shares. For 2024, the firm maintains its $740M revenue estimate and raised its EBITDA estimate by 2.3%, but cites lower peer multiples and potentially less room for earnings upside in the near-term for its decreased price target. While positive on Duolingo’s category leadership, strong execution and expanding user base, the firm sees high growth reflected in its valuation and views shares as fairly valued.