Piper Sandler raises Rollins stock price target to $72 on solid growth

Published 27/07/2025, 06:20
Piper Sandler raises Rollins stock price target to $72 on solid growth

Investing.com - Piper Sandler has raised its price target on Rollins (NYSE:ROL) to $72.00 from $70.00 while maintaining an Overweight rating on the pest control company’s stock. The stock currently trades at $58.09, near its 52-week high of $58.65, with InvestingPro analysis indicating the stock is trading above its Fair Value.

The price target increase follows what the research firm described as a "solid and straightforward" second quarter performance for Rollins, with consumer demand remaining strong through June and continuing into July. The company maintained impressive gross profit margins of 52.69% and achieved revenue growth of 10.38% over the last twelve months.

Piper Sandler noted that Rollins’ organic sales have potential to accelerate in the second half of the year, while sales growth from mergers and acquisitions is trending above management’s guided 3%-4% growth contribution for 2025.

The firm expects Rollins’ incremental margin to improve meaningfully in the second half, reaching 25%-30%, as one-time claims that pressured second-quarter results fade and growth investments have been fully lapped.

Piper Sandler maintains its outlook for double-digit earnings per share growth for Rollins, citing long-term opportunities from the company’s modernization initiatives across all business segments.

In other recent news, Rollins has announced a quarterly dividend of $0.165 per share, payable on September 10, 2025, to shareholders of record as of August 11, 2025. This development comes alongside several analyst updates on the company’s stock. Morgan Stanley (NYSE:MS) has raised its price target for Rollins to $58.00, maintaining an Equalweight rating, after updating its financial model for the company. Meanwhile, Jefferies has upgraded Rollins from Hold to Buy, increasing the price target to $65.00, citing high-quality earnings growth and the potential for strategic acquisitions. Piper Sandler has also initiated coverage on Rollins with an Overweight rating and a $70.00 price target, highlighting the company’s transition to a modernized public entity with sustainable growth. These analyst updates reflect a positive outlook on Rollins’ performance and potential future growth.

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