William Blair analyst Tim Mulrooney has reiterated their bullish stance on ROL stock, giving a Buy rating yesterday.
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Tim Mulrooney has given his Buy rating due to a combination of factors that highlight Rollins’s strong financial performance and growth potential. The company exceeded both top-line and bottom-line expectations in the third quarter, with revenue rising by 12% and adjusted earnings per share increasing by 21%, surpassing consensus estimates. This robust performance was driven by organic growth in both residential and commercial sectors, with particularly strong results in the termite segment.
Moreover, Rollins demonstrated significant improvement in incremental margins, which reached 35%, well above the consensus expectation of 30%. This improvement was partially attributed to favorable insurance and claims impacts. Looking forward, Mulrooney anticipates continued strong incremental margins in the fourth quarter of 2025, assuming no unexpected claims activity, as the company benefits from past investments. These factors collectively underpin the reaffirmation of an Outperform rating for Rollins.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $63.00 price target.