2023-07-05 11:47:05 ET
Rollins ( NYSE: ROL ) on Wednesday was rated as a Buy in new research coverage by analysts at Bank of America Securities. They said the pest-control company, whose brands include Orkin and Critter Control, is poised for growth during economic cycles of recession and recovery.
“We have a high degree of confidence in the company’s ability to compound revenue and earnings through economic cycles,” Jason Haas, analyst at BofA, said in a July 5 report. “Rollins ( ROL ) is highly recession resilient with 80% of revenue recurring.”
BofA set a price target of $49 a share on Rollins ( ROL ), based on a price-to-earnings multiple of 48 times 2024 results.
“We see limited risk to Rollins’ ( ROL ) growth trajectory—from a soft housing market, recession, competition, or weather—and therefore believe the stock deserves a premium multiple,” according to BofA.
Seeking Alpha columnist Felix Fung has a Hold rating on Rollins ( ROL ) based on its current valuation . Contributor The Pineapple Investor also rates Rollins ( ROL ) as a Hold because of its valuation .
Bank of America Securities estimates for Rollins Inc. ( ROL ), July 5 | |
EPS | |
2023E | $0.89 |
2024E | $1.01 |
2025E | $1.14 |
More about Rollins
- Rollins GAAP EPS of $0.18 beats by $0.01, revenue of $658M beats by $14.23M
- Rollins raises dividend by 30%
For further details see:
Rollins rated Buy in new research coverage at BofA