Barclays Starts Rollins (ROL) at Equal weight

Correction: Barclays analyst Manav Patnaik initiates coverage on Rollins (NYSE: ROL) with a Equal weight rating and a price target of $50.00.

The analyst comments: "As such we initiate coverage of ROL with a constructive EW (and $50 PT); and will be on the keen look out for more opportunistic entry points... Note: Our $50 PT is based on ~41x 2026E EPS; a multiple that is lower than CTAS's deserved premium (at ~46x CY'26E EPS), but higher than ECL's ~31.5x FY'26E EPS (ECL has lower growth). ...because ROL does have a solid investment thesis (which we expand on below)... a) large ($20B), fragmented (>40% split by 20k companies) TAM with strong secular growth drivers (climate & environmental, demographic shifts, higher demand for "do-it-for-me" evolving standards on cleanliness); b) scale, strength of brand, and value proposition drive above market growth and share gains; c) attractive business model, with solid recession resiliency (Figure 2); d) strong capital allocation and e) a culture driven compounder of revenues, EPS, and FCF (clearly illustrated in Figure 1 below)."

For an analyst ratings summary and ratings history on Rollins click here. For more ratings news on Rollins click here.

Shares of Rollins closed at $47.33 yesterday.

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