Goldman Sachs Upgrades Duolingo to Neutral, Adjusts Price Target to 106

Positive Analyst Sentiment

- Duolingo has an average analyst rating of "outperform" with price targets ranging from $120 to $200.

Recent Analyst Actions

- On May 10, 2023, Goldman Sachs upgraded Duolingo from "sell" to "neutral" and maintained its price target of $198. - On June 5, 2023, Goldman Sachs analyst Eric Sheridan downgraded Duolingo to "neutral" and lowered the price target to $106.

Goldman Sachs' Rationale

- Goldman Sachs cited Duolingo's strong revenue growth and improving profitability as reasons for the upgrade. - However, the analyst also noted that Duolingo faces increasing competition and that its valuation is relatively high.

Conclusion

- Goldman Sachs' upgrade to "neutral" reflects its belief that Duolingo is a solid company with long-term growth potential. - However, the analyst's lowered price target indicates that Goldman Sachs believes that Duolingo's stock is currently overvalued.