Peter Keith, an analyst from Piper Sandler, has initiated a new Buy rating on Rollins (ROL).
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Peter Keith has given his Buy rating due to a combination of factors that highlight Rollins, Inc.’s strong market position and growth potential. Rollins is a leading pest control service provider with a significant portion of its revenue coming from recurring sources, which provides stability and predictability in its financial performance. The company’s ongoing transition from a family-run business to a more modernized public entity is expected to accelerate growth, similar to the transformation seen in Walmart’s modernization efforts.
Moreover, Rollins operates in a highly fragmented industry with a growing total addressable market, driven by factors such as climate change and increased pet ownership. Despite its high valuation, Rollins has maintained consistent valuation metrics over the years, and the anticipated acceleration in earnings per share growth makes it an attractive investment for both consumer and business services investors. The company’s modernization efforts, including technology transformation and operational efficiencies, are still in the early stages, suggesting further growth potential in the future.
According to TipRanks, Keith is a 5-star analyst with an average return of 10.8% and a 53.72% success rate. Keith covers the Consumer Cyclical sector, focusing on stocks such as Boot Barn, Leggett & Platt, and Sleep Number.
In another report released on June 25, Wells Fargo also maintained a Buy rating on the stock with a $65.00 price target.