Rollins Seen Reaffirming 2026 Outlook on Pricing Power, Customer Growth, RBC Says

MT Newswires Live05-13

Rollins (ROL) is expected to reaffirm its 2026 and medium-term outlook, supported by pricing power, customer wins and operational leverage across its pest-control businesses, RBC Capital Markets said Tuesday in a report.

At an investor day on Thursday, Rollins is expected to reiterate 2026 guidance of 7% to 8% organic revenue growth, 2% to 3% growth in mergers and acquisitions, and 25% to 30% adjusted incremental margins, the report said.

RBC also expects the company to restate its medium-term target for above market revenue growth, double-digit earnings growth and 30% to 35% incremental adjusted EBITDA margins.

Rollins operates in a large, underpenetrated industry with favorable pricing dynamics and is positioned to expand its customer base through its diversified brand portfolio and multichannel distribution, RBC said.

Efficiency gains from routing and scheduling optimization, back-office modernization, and other cost controls are also expected to support operational leverage, the report said.

RBC maintained its outperform rating on Rollins stock and its $67 price target.

Price: 52.50, Change: -0.48, Percent Change: -0.92

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