Duolingo shares surged more than 5% on Tuesday after Evercore ISI upgraded the language-learning company to Outperform from In Line and raised its price target to $210 from $105. The new target implied nearly 42% upside from Monday’s close.
Evercore ISI analyst Mark Mahaney said a recent survey showed Duolingo has about four times the selection of its closest pure-play competitor, while user satisfaction and daily usage have increased. Daily usage rose to 65% in 2026 from 61% in 2025, which Mahaney attributed to AI-linked product changes, including spoken tokens, Flashcards and Speaking Adventures. The company also reported a record current user retention rate of 84%, up about one percentage point year over year.
Mahaney argued that generative AI tools are unlikely to significantly undermine Duolingo’s business, noting that ChatGPT users interested in language learning are largely focused on travel, an area Duolingo is less focused on because it is more difficult to monetize.
DA Davidson also turned more positive, raising its price target to $175 from $160 while maintaining a Buy rating. Analyst Wyatt Swanson based the update on in-house data tracking more than 170,000 existing Duolingo users. The data showed continued strength in week-over-week daily active user growth, with the final week of August recording another increase. DA Davidson estimates third-quarter daily active user growth could reach between 25.6% and 27.6% year over year.
Despite the bullish calls, Wall Street remains divided. LSEG data shows 17 of the 25 analysts covering Duolingo have a Hold rating. The stock has also flashed technical risks, including a rising broadening wedge pattern and an abandoned baby candle that could point to a reversal toward $134. Duolingo has been in a transition from growth to value, with net profit margin falling to 11.8% from 17.8%, even as paid subscribers rose 17% year over year to 12.7 million and revenue increased 18% to $298 million.
DA Davidson’s new price target represents 23.5 times its 2026 EBITDA estimate and 18.5 times its 2027 estimate, and the firm noted its daily active user data has historically underestimated Duolingo’s reported results by 100 to 200 basis points. DUOL traded around $162, up 77% from its lowest level this year, but below its start-of-year levels.
