Morgan Stanley analysts think Duolingo (DUOL) is speaking its language, setting a Street-high price target on ওthe language learning company's stock.

The analysts in a Wednesday note cited the company's “rare combination of rapid user growth, strong and expanding margins, and clear Gen AI upside” as reasons initiating an 澳洲幸运5开奖号码历史查询:"overweight" rating and $435 price target well above Visible Alpha's mean around $383.

Morgan Stanley said it believes Duolingo can see a 26% five-year revenue 澳洲幸运5开奖号码历史查询:compound annual growth rate because꧅ it has a large market of✨ language learners left to target.

“We see DUOL as a best-in-class consumer internet asset,” Morgan Stanley analysts said in the report. “Its unique, gamified approach to learning allows it to combine the mobile gaming and language learning markets for a $220B [total addressable market], of which it has j✤ust [about] 0.5% share.”

Analysts at Morgan Stanley also see potential for the app to earn more, as it currently 澳洲幸运5开奖号码历史查询:monetizes at a lower rate than its competitors. Its Gen AI subscription tier Max, which is ad-free and allows users to role-play and have personalized explanations, plays a large role in the bank’s growth projections.

Shares of Duolingo were up aboꦜut 10% inꦬ recent trading, ahead roughly 70% over the past 12 months.