TSX jumps amid Fed rate cut hopes, ongoing U.S. government shutdown
Investing.com - UBS maintained its Neutral rating and $61.00 price target on Rollins (NYSE:ROL) stock, citing a balanced outlook ahead of the company’s third-quarter earnings report. The stock currently trades at $58.74, near its 52-week high of $59.12, with InvestingPro data showing three analysts recently revising earnings estimates upward.
UBS slightly reduced its Q3 organic growth estimate to 7.5% from 7.8% to account for potential impacts from choppier August weather in parts of the East and Midwest regions, though the firm’s estimates still remain above consensus. This comes as Rollins maintains strong financial metrics, with InvestingPro data showing impressive revenue growth of 10.38% and industry-leading gross margins of 52.69%.
The research firm noted that despite cooler-than-normal weather in some regions during August, industry contacts indicated this did not materially impact demand during the quarter, and the overall business environment for pest control services remains strong.
According to UBS, the pest control market showed resilience in Q3, with industry participants reporting slightly improved year-over-year customer retention rates and strong new business sales, suggesting continued sector strength.
Pricing in the pest control industry remains robust, with price increases in the 4% range consistent with recent quarters, and customers showing little resistance to these increases, while customer acquisition costs have remained stable year-over-year.
In other recent news, Rollins announced a quarterly dividend of $0.165 per share, payable on September 10, 2025, to shareholders of record as of August 11, 2025. Analysts have also shown interest in Rollins, with JPMorgan initiating coverage with an Overweight rating and a $70 price target, suggesting a 24% upside. Piper Sandler raised its price target to $72, maintaining an Overweight rating, citing solid growth and strong consumer demand. Morgan Stanley adjusted its price target to $58 while keeping an Equalweight rating, noting a 1% increase in estimates for 2025 and 2026. Piper Sandler also initiated coverage with an Overweight rating and a $70 target, highlighting Rollins’ transition to a more modernized public company. These developments reflect a positive outlook from analysts, emphasizing Rollins’ resilient business model and sustainable growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.