MicroVision MOVIA lidar gains support on NVIDIA DRIVE AGX platform
Investing.com -- Piper Sandler initiated coverage of Rollins Inc (NYSE:ROL) with an Overweight rating and a $70 price target saying the pest control company’s ongoing transformation under new leadership and its consistent track record of earnings growth.
The firm likened Rollins’ shift from a family-run business to a more technology-driven public company to Walmart’s earlier modernization push, saying those changes could help accelerate earnings growth and make the stock more attractive to a broader range of investors.
Rollins, which owns brands including Orkin and has about 75% recurring revenue, is targeting 9%–11% annual sales growth, supported by pricing initiatives, operational efficiencies, and digital investments.
Piper noted that both the CEO and CFO were appointed in 2022 and that the company is still in the early stages of this transition.
While the stock trades at a high multiple, around 48 times earnings and 31 times EBITDA, Piper said that valuation has been stable for the past several years. It sees the potential for sustained low-to-mid teens EPS growth.
The global pest control industry, with a total addressable market exceeding $20 billion, remains highly fragmented.
Piper expects consolidation and secular trends such as climate change and growing pet ownership to support steady demand.
Despite the positive outlook, the brokerage flagged some near-term risk to second-quarter results as the company continues to invest for growth.