Rollins Faces Mixed Q2 Setup as Soft Organic Growth Offsets Pest Control Strength, UBS Says

MT Newswires Live07-16

Rollins (ROL) has a mixed Q2 setup, as lower growth in one-time and ancillary work could result in a third consecutive quarter of organic growth below 7%, although the recurring pest control business remains strong, UBS Securities said in an earnings preview Wednesday.

Rollins is scheduled to release its Q2 financial results on July 22.

UBS said it does not believe Rollins faces any structural issues, but views the situation as a calibration issue over whether 7% to 8% organic growth is sustainable, given that trends at Rentokil (RTO) are less weak.

Considering the channel commentary about slower one-time and ancillary environment, and with Rollins pointing to a slower start in April and early May, UBS lowered its Q2 organic growth estimate to 6.9% from 7.5%, according to the note.

The brokerage said it expects Rollins to reiterate its organic growth guidance of 7% to 8% for 2026, noting the comparison is relatively easy in Q4. UBS lowered its 2026 organic growth estimate to 7.2% from 7.3% due to lower growth rate in Q2, the note added.

UBS kept a neutral rating on Rollins and lowered its price target to $50 from $61.

Price: 43.88, Change: -0.41, Percent Change: -0.93

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