China Merchants Securities International (CMSI) named Duolingo a top pick in its first-quarter 2026 education sector outlook. CMSI maintained its "Overweight" rating on the stock and reiterated a price target of $347 per share.
The positive outlook stems from promising prospects for the education technology industry. CMSI believes the sector is driven by innovation in artificial intelligence (AI) and defensive growth characteristics.
The brokerage highlighted specific factors shaping the competitive landscape for education companies. These include the integration of AI, systematic content, and emotional support.