Duolingo, the language learning platform, has experienced significant volatility, soaring over 350% in 2023-2024 before a sharp decline of 60% in 2025-2026. D.A. Davidson analyst Wyatt Swanson believes that the company's efforts to enhance its core business and improve profitability are beginning to show results.
The firm has raised its 12-month price target for Duolingo from $130 to $160, indicating a potential upside of 23% from the stock's closing price on Monday. Swanson noted that recent improvements in daily active users (DAUs) and user retention suggest that Duolingo's product is gaining traction.
This positive trend is expected to support monetization efforts, which could enhance the company's value. Despite D.A. Davidson's optimistic outlook, the broader Wall Street consensus remains cautious, with 19 out of 25 analysts rating the stock as a hold. Following the upgrade, Duolingo shares rose approximately 4% in early trading on Tuesday