Duolingo price target raised to $260 from $230 at BofA

BofA raised the firm’s price target on Duolingo to $260 from $230 and keeps a Neutral rating on the shares following what the firm identifies as “another beat & raise” quarter on accelerating bookings growth. While the firm agrees with management that “this pace can’t continue forever,” and notes that 2024 guidance suggests bookings growth decelerating about 17 points at the midpoint of the range, BofA thinks the company’s ability to continue developing user engagement that converts into bookings and retention “remains a valuable asset and continued upside is possible,” the analyst tells investors.