Duolingo's (DUOL) rapid-fire, bite-sized lesson plans provide "superior" entertainment value compared with the majority of mobile gaming apps, BofA Securities said in a Monday note.
The brokerage said that Duolingo's gamified learning mechanics position the company to win within the entertainment total addressable market, specifically the people who seek casual mobile gaming to occupy idle time.
The company's growth playbook, which includes over 150 language courses and gamified subjects like Chess, Music, and Math, could sustain Duolingo's position as "one of the world's top 5 mobile gaming apps for many years," BofA said.
The firm raised its rating on Duolingo to buy from neutral and adjusted its price objective to $250 from $301.
Shares of the company were up over 8% in recent Monday trading.
Price: 189.70, Change: +13.22, Percent Change: +7.49
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