DA Davidson raised Duolingo's (NASDAQ:DUOL) price target to $175 from $160. The firm maintained a "Buy" rating on the language-learning company's shares.
DA Davidson bases its confidence on proprietary data tracking. This data indicates continued strength in daily active user (DAU) growth through August.
Analyst Wyatt Swanson noted particular strength in the final week of August. This period recorded the best weekly user growth since an early June event.
Based on this trend, DA Davidson projects Duolingo's third-quarter DAU growth. The firm estimates this growth could range between 25.6% and 27.6% year-over-year.
The firm bases the new $175 price target on Duolingo's estimated 2026 and 2027 EBITDA.