Duolingo reinstated with a Neutral at BofA

BofA reinstated coverage of Duolingo with a Neutral rating and $188 price target. While positive on Duolingo’s category leadership and differentiated, gamified offering, shares are trading above Duolingo’s historic average and the firm’s estimates are “already well above the Street for 2024,” so the analyst argues that best-in-class subscription growth is already “fully translated” in the current valuation.