Evercore Turns Bullish on Duolingo Stock as AI Fears Fade

Duolingo (DUOL) stock rose 5% premarket after Evercore ISI doubled its price target to $210, citing growth potential. The analyst upgraded the stock to 'Outperform' and increased earnings forecasts. Duolingo reported Q2 revenue growth of 18%, with daily active users up 23% and paid subscribers up 17%. Evercore sees AI as a competitive risk but notes no significant user cannibalization.

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Evercore ISI reduced its price target for Ciena Corp. (NYSE:CIEN) to $375 from $550, citing margin concerns, while maintaining an In Line rating. Ciena reported July quarter revenue of $1.67 billion and EPS of $2.11, beating estimates. The company provided upbeat guidance for Q4 and fiscal 2027, with revenue growth expected to exceed 30%. Ciena's stock has fallen 11% over the past week but remains up 274% over the past year.

Duolingo (DUOL) shares rose 7% after Evercore ISI upgraded it to Outperform and doubled its price target to $210, citing Duolingo's unique advantages over general AI tools like ChatGPT. The analyst raised earnings estimates for 2027 and 2028, suggesting AI could boost engagement. Short interest remains high at 17.85% of the float. Investors should watch user growth, subscriptions, and margins to assess the company's performance.

Evercore ISI downgraded Ultragenyx Pharmaceutical from Outperform to In Line and cut its price target from $34 to $16. The stock has declined significantly, with a 44.03% drop over 4 months and a 35.43% decrease year-to-date. Investors may consider reviewing the company's fundamentals and valuation.

Evercore ISI upgraded Duolingo (DUOL) to Outperform, citing resilient user engagement and a $400M share repurchase program. The broker suggests AI tools like ChatGPT complement rather than replace Duolingo, easing substitution fears. Duolingo projects $1.6B revenue and $143.7M earnings by 2029, though some analysts predict lower earnings.