** Morgan Stanley cuts price target on language learning app Duolingo DUOL.O to $480 from $515, which still represents a 21.1% upside to stock's last close
** DUOL shares fall ~2.2% to $387.53; Morgan Stanley remains "overweight" on the company
** Brokerage says DUOL is facing backlash over the company's internal strategy memo, issued in April outlining its 'AIFirst' strategy, that led to user weakness in the U.S
** "As time passes, U.S. user pushback may fade, allowing the company to return to business as usual" - MS
** Morgan Stanley adds the co's social media pushback can reduce the efficacy of the U.S. DUOL's social media channel, which has been a low-cost growth lever
** 14 of 23 brokerages rate the stock "buy" or higher, nine "hold"; their median PT is $486.07 - LSEG data
** Including session's moves, stock up ~19.4% YTD
(Reporting by Prakhar Srivastava in Bengaluru)
((Prakhar.srivastava2@thomsonreuters.com))
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