BUZZ-Morgan Stanley cuts Duolingo PT on U.S. user pullback

Reuters07-09
BUZZ-<a href="https://laohu8.com/S/MTK">Morgan Stanley</a> cuts <a href="https://laohu8.com/S/DUOL">Duolingo</a> PT on U.S. user pullback

** 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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