Shares of Duolingo Inc. rose significantly in Tuesday trading following a bullish analyst report and an upgraded rating for the language-learning platform.

The primary growth driver was an updated assessment from DA Davidson analyst Wyatt Swanson, who raised his rating on Duolingo stock from neutral to buy. Along with the upgrade, the price target was raised from one hundred thirty dollars to one hundred sixty dollars per share, representing a potential upside of nearly fifteen percent from current levels.

The updated valuation reflects confidence that key monetization risks are already priced in following the stock’s prior sixty percent decline. Investors are beginning to favorably view new marketing campaigns, product improvements, and user base dynamics: in the second quarter, daily active users increased by twenty-three percent to fifty-eight point seven million, while paid subscribers grew by seventeen percent to twelve point seven million.

Duolingo is approaching a inflection point where bookings growth rates are expected to converge with active user expansion. In the most recent quarter, the company’s bookings grew by eight percent to reach two hundred eighty-nine million dollars.