Rollins initiated with a Buy at Goldman Sachs

Goldman Sachs initiated coverage of Rollins with a Buy rating and $49 price target. The analyst believes Rollins is a “differentiated and leading provider of pest control services leveraged to strong route density, a unique multi-brand strategy that facilitates market share gains, and attractive business model characteristics including recurring revenues, defensiveness and operating leverage.” The company’s’ organic revenue growth has stepped up structurally from mid-single-digits between 2008 and 2020 to high-single-digits since 2021 driven by an expanded brand portfolio, a greater emphasis on door-to-door sales, the analyst tells investors in a research note.