Gamification and artificial intelligence are "a winning combination" for language-learning app maker Duolingo , according to Bank of America.
Analyst Nat Schindler, who reiterated his buy rating on the company, boosted his price target on Duolingo shares to $160 from $105.
The analyst highlighted a new AI-driven paid subscription, Duolingo Max, that could boost the company's growth prospects, according to a Wednesday research note.
The service includes new AI features powered by GPT-4, including a role-play function to allow users to practice conversations.
To be sure, the analyst noted potential risks to his valuation include competition from peers adopting new technology or formatting.