Rollins (ROL) PT Raised at Piper Sandler as 'Solid and Steady Growth Continues'

Piper Sandler analyst Peter Keith raised the price target on Rollins (NYSE: ROL) to $72.00 (from $70.00) while maintaining a Overweight rating.

The analyst commented: "Solid and Steady Growth Continues; We reiterate our OW rating on ROL following an overall solid and straightforward Q2, and raise our PT slightly to $72 (50x 2027E EPS). Overall, consumer demand remains quite strong, and June strength has continued into July. The set up for 2H looks solid as organic sales have potential to accelerate and sales growth from M&A is trending above mgmt's guided 3%-4% growth contribution in 2025. Additionally, the incremental margin should step-up meaningfully in 2H (to 25%-30%) as 1x claims pressured Q2, and growth investments have now been fully lapped. Furthermore, mgmt. seems pleased with the returns from growth investment across all business segments. All in, ROL growth outlook remains steady and solid for +DD% EPS growth. And we continue to see LT opportunities from ROL modernization initiatives."

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