Stifel Upgrades Rollins (ROL) to Hold

Stifel analyst Michael Hoffman upgraded Rollins (NYSE: ROL) from Sell to Hold with a price target of $34.00 (from $28.50).

The analyst comments "Our Sell thesis was not a reflection of a secular deterioration in Pest Control nor was it ROL experiencing a draconian deterioration in its fundamentals. Our thesis questioned could the valuation being paid for ROL be supported by double digit sustainable future FCF growth. ROL's current valuation, appears to be based on it repeating its historic 15- year 10% FCF CAGR indefinitely. While that long-term concern may still be warranted in the near-term ROL has reinvigorated organic growth and coupled with the more rapid consolidation of domestic Pest Control suggests ROL can drive double digit FCF growth for the next five years."

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 $38.68 yesterday.

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