Evercore Upgrades Duolingo, Doubles Price Target Amid ChatGPT Concerns
Duolingo shares rose about 7% after Evercore ISI upgraded the stock from In Line to Outperform and doubled its price target from $105 to $210. The upgrade was based on the belief that fears around competition from general-purpose AI tools like ChatGPT have been overstated, as Duolingo's structured learning platform remains distinct with features such as streaks, curriculum design, social reinforcement, and mobile accessibility. Evercore raised its earnings estimates for 2027 and 2028, suggesting that AI could enhance engagement rather than erode the company’s competitive advantage. However, challenges remain: chatbots are improving rapidly, voice interaction is making free-form tutoring more natural, and Duolingo must continue investing in product development to stay ahead. The upgrade signals a potential shift in investor sentiment but does not confirm that competition has peaked. Short interest remains high at 17.85% of the float, which could amplify market reactions if results fall short.
Tickers: $DUOL
Topics: AI competition ChatGPT Duolingo Evercore ISI Price target upgrade