RBC Capital Markets raised its price target on Rollins, Inc. (NYSE: ROL) to $70 from $62 while maintaining an Outperform rating, citing steady operating performance in a shifting macroeconomic environment.
The analyst said Rollins was expected to generate revenue growth of 7% to 8%, driven by mid-single-digit growth in residential pest control, high-single-digit growth in commercial services, and low-double-digit growth in termite and ancillary offerings. Incremental margins were projected at 30% to 35%, consistent with the company’s mid-term guidance.
RBC said Rollins remained well positioned to perform in a choppy macro backdrop due to the essential nature of its services and the resilience of demand. While the stock had re-rated modestly above its five-year average price-to-earnings multiple, the firm expected future appreciation to align with low- to mid-teens earnings growth in 2026.
