UBS Downgrades Rollins (ROL) to Neutral

UBS analyst Joshua Chan downgraded Rollins (NYSE: ROL) from Buy to Neutral with a price target of $49.00.

The analyst comments "We are downgrading to Neutral as potential shifts in growth/margin narratives are creating a more balanced setup in the coming months. Specifically, Rollins' outgrowth versus peer Rentokil could narrow from the recent impressive ~600bps to 300-500bps in upcoming quarters. We also expect that with gross margins having reached record levels in 2023, more weight could be placed on SG&A leverage to drive margin expansion going forward. Rollins continues to generate double-digit compounding EBITDA growth, but with shares +20%+ in the L6M, our estimates are in line with the Street, and given the dynamics above, we believe setup has become more balanced."

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 $44.35 yesterday.

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