Rollins (ROL) is poised to grow revenue this year in the high single-percentage digits or low double-percentage digits over 2024 levels, supported both by organic growth and likely merger-and-acquisition activity for the pest-control company, analysts at RBC Capital Markets said Monday in a note.
The analysts continue to project around $3.67 billion in 2025 revenue at Rollins, topping the FactSet consensus call of analysts by around $300 million. They said the optimistic view is supported by the company's client base in the healthcare, hospitality, logistics and warehouse and distribution industries, making its commercial segment less cyclical than it has been in the past.
Other positives likely supporting higher revenue at Rollins this year include expected gains for its residential subscription business along with well-known and industry-leading brands providing ample up-selling and cross-selling opportunities in addition to volume growth, the RBC analysts said.
RBC analysts said they believe Rollins' management will "continue to invest in organic growth opportunities" in an effort to "maintain and expand the company's leadership position."
RBC reiterated an outperform rating on the stock with a $52 price target.
Price: 45.66, Change: -0.51, Percent Change: -1.10