UBS Reiterates Neutral Rating on Rollins (ROL)

UBS analyst Joshua Chan reiterated a Neutral rating and $36.00 price target on Rollins (NYSE: ROL).

The analyst commented, "ROL shares likely trade lower tomorrow after Q3 organic growth of +4.4% fell short of Street (+5.7%) and buyside expectations (likely in the +5.3- 5.5% range). Growth slowed across the board as customer acquisition challenges continued, with the Residential business slowing to +2.3%, levels not seen in years. Margin management was solid (in line with expectations) considering the growth shortfall, but we expect predominate attention to be paid on growth reacceleration near term. It appears that management will articulate headwinds with greater clarity tomorrow and a plan to proceed, but without concrete evidence of a change in trajectory, we think near-term stock support could be more difficult to find."

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 $33.45 yesterday.

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