
Rollins (ROL) Stock Forecast & Price Target
Rollins (ROL) Analyst Ratings
Bulls say
Rollins has demonstrated a significant improvement in its contribution margin, reaching 18% in the second quarter, indicating enhanced operational efficiency. The company's outlook for the second half of the year appears promising, with expectations for organic sales acceleration and stronger growth from mergers and acquisitions, which are projected to exceed management's guidance of 3-4% for 2025. Furthermore, the incremental margin is expected to increase substantially to a range of 25-30% in the second half, as previous claims that impacted Q2 have been addressed and growth investments have been successfully managed.
Bears say
Rollins has experienced significant pressure on its EBITDA margin, which declined by 70 basis points due to growth investments and one-time insurance and claims headwinds. Furthermore, both gross margin and SG&A have been negatively impacted in the second quarter, exhibiting a concerning trend with continued pressures from growth investments. The company's performance has also fallen short of its own targets, achieving only 11% in Q1 compared to the anticipated range of 25-30%, raising concerns about its financial stability moving forward.
This aggregate rating is based on analysts' research of Rollins and is not a guaranteed prediction by Public.com or investment advice.
Rollins (ROL) Analyst Forecast & Price Prediction
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