Duolingo initiated with an Outperform at Scotiabank

Scotiabank initiated coverage of Duolingo (DUOL) with an Outperform rating and $425 price target Duolingo, a gamification powerhouse, leverages its addictive, game-like learning experience to unlock multiple levers for revenue growth across its rapidly expanding total addressable market, while charting a clear path toward 40%+ EBITDA margins, the analyst tells investors in a research note. The firm projects revenue growing at an 18% compound annual growth rate from 2023 to 2033, with EBITDA margins expanding from 18% to 40% by 2033, and argues that “no company truly compares” to Duolingo.