Duolingo gains after D.A. Davidson upgrades rating, hikes price target

Language-learning platform Duolingo's DUOL.O shares gain 7% to $139.26.

D.A. Davidson upgrades rating to "buy" from "neutral," and raises its price target to $160, which represents a 22.9% upside to the stock's last close.

The firm says Duolingo's product enhancements, marketing changes and continued monetization improvements are "underappreciated by investors" and also sees a "long runway for growth in coming years."

Four of 25 brokerages rate the stock "buy" or higher, 19 rate it "hold" and two rate it "sell," with a median price target of $122.50, according to LSEG-compiled data.

Up to the last day's close, the stock is down 20.6% year to date.