Rollins price target raised by $5 at UBS, here’s why

UBS raised the firm’s price target on Rollins to $50 from $45 and keeps a Buy rating on the shares. UBS believes Rollins’ strong growth profile, aided by recurring revenue and population migration to the South, is attractive when coupled with its margin improvement opportunities, the analyst tells investors in a research note. The firm is modeling double-digit EPS growth in 2023-2025, and believes multiple expansion can be supported by margin improvement.