Analyst: Duolingo Stock Trading at "Peak Valuation"

Valuation and Analyst Ratings - Duolingo Inc is currently considered to be trading at "peak valuation" according to a bear note from Bank of America, leading to a downgrade from "buy" to "neutral" while raising the price target from $355 to$375 [1] - The stock is down 1.3% before the bell, expected to open around $357, and remains close to its all-time high of$378.48 reached on December 5, with a 12-month lead of over 70% [2] - Nine out of 16 brokerages covering Duolingo rated the stock as "buy" or better, indicating potential for further downgrades, while the average 12-month target price of $336.29 represents a 7.1% discount to the last closing price [2] Options Trading and Volatility - Duolingo shares may face challenges if options traders alter their strategies, as the equity's 10-day call/put volume ratio of 2.07 ranks higher than 93% of readings from the past year [3] - The stock tends to outperform volatility expectations, as indicated by Duolingo's Schaeffer's Volatility Scorecard (SVS), which is currently at an elevated score of 87 out of 100 [3]