Analyst Brian McNamara of Canaccord Genuity maintained a Hold rating on Rollins, retaining the price target of $50.00.
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Brian McNamara has given his Hold rating due to a combination of factors impacting Rollins’ competitive position in the North American pest control market. Despite Rollins showing strong organic growth in its residential segment, outperforming Rentokil’s growth by a significant margin, the competitive landscape is shifting. Rentokil’s recent acquisition of Terminix has altered market dynamics, with Rentokil Terminix now holding a larger market share than Rollins.
While Rollins has managed to gain some market share, the integration challenges faced by Rentokil Terminix could potentially stabilize, narrowing the competitive gap. Additionally, Rentokil’s strategic initiatives, such as refocusing its marketing efforts and expanding its branch network, suggest potential improvements in its market position. These factors contribute to McNamara’s cautious stance, leading to a Hold rating for Rollins, with a price target of $50.
According to TipRanks, McNamara is an analyst with an average return of -3.9% and a 43.39% success rate. McNamara covers the Consumer Cyclical sector, focusing on stocks such as SharkNinja, Inc., Yeti Holdings, and Holley.