Morgan Stanley cuts Duolingo PT on U.S. user pullback

Morgan Stanley cuts price target on language learning app Duolingo DUOL.O to $480 from $515, which still represents a 21.1% upside to stock's last close

DUOL shares fall ~2.2% to $387.53; Morgan Stanley remains "overweight" on the company

Brokerage says DUOL is facing backlash over the company's internal strategy memo, issued in April outlining its 'AIFirst' strategy, that led to user weakness in the U.S

"As time passes, U.S. user pushback may fade, allowing the company to return to business as usual" - MS

Morgan Stanley adds the co's social media pushback can reduce the efficacy of the U.S. DUOL's social media channel, which has been a low-cost growth lever

14 of 23 brokerages rate the stock "buy" or higher, nine "hold"; their median PT is $486.07 - LSEG data

Including session's moves, stock up ~19.4% YTD