Duolingo upgraded to Outperform from Market Perform at JMP Securities

JMP Securities upgraded Duolingo to Outperform from Market Perform with a $260 price target. The analyst sees “multiple catalysts” that can sustain the company’s growth and notes the shares are now trading for 19.9-times JMP’s 2026 “Blue Sky” free cash flow. A broader rollout of Max, optimization of subscription tiers and Family Plan, and the launch of a conversational experience are material catalysts that can continue to drive Duolingo’s growth going forward, the analyst tells investors in a research note. The firm views Math and Music as medium-term drivers that can represent significant businesses on their own over time. JMP is taking advantage of the pullback in the shares with the upgrade.