William Blair analyst Tim Mulrooney has reiterated their bullish stance on ROL stock, giving a Buy rating on April 16.
Tim Mulrooney has given his Buy rating due to a combination of factors that highlight Rollins’ strong performance and potential. The company’s revenue for the first quarter was $823 million, which surpassed the consensus estimate of $817 million, indicating robust sales growth. Although the adjusted EBITDA was slightly below expectations, the overall financial results were positive, with adjusted EPS increasing by 10% and meeting the consensus estimate.
Despite some challenges, such as foreign exchange impacts and one less working day, Rollins demonstrated resilience with organic revenue growth of 7.4%, aligning with its long-term targets. Mulrooney believes that, excluding these external factors, Rollins would have exceeded its growth targets, showcasing its underlying strength. The company’s ability to navigate macroeconomic uncertainties and tariff impacts further supports the Buy rating, as it is well-positioned to maintain its growth trajectory.
According to TipRanks, Mulrooney is a 4-star analyst with an average return of 6.5% and a 55.32% success rate. Mulrooney covers the Industrials sector, focusing on stocks such as WillScot Mobile Mini Holdings, Cintas, and APi Group.
In another report released on April 16, RBC Capital also maintained a Buy rating on the stock with a $62.00 price target.