Rollins (ROL) faces headwinds to organic growth and incremental margin expansion in Q1 due to weather-related branch closures in January, RBC Capital Markets said in a note Sunday.
Analysts, however, expect recurring organic growth to remain "robust" at over 7%, with reported organic revenue growing across 2026, as the company saw improved growth rates going into February and peak pest season usually begins in March, according to the note.
After a "notably tough" January, RBC said it is cautiously optimistic that the positive momentum in February will continue in March, although March's outcome remains uncertain.
Rollins' AI-resistant pest control platform is insulated from economic cycles and positions the company as a "compelling" defensive investment amid market volatility, analysts said.
RBC has an outperform rating on the stock and a $67 price target.
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