Rollins price target raised to $58 from $56 at Wells Fargo

Wells Fargo analyst Jason Haas raised the firm’s price target on Rollins (ROL) to $58 from $56 and keeps an Overweight rating on the shares. The firm sees an attractive opportunity in Rollins as the market has grown concerned with incremental margins tracking below the company’s 30% target, but Wells attributes this largely to offensive investments made in technicians, sales, and marketing to fuel strong 7%-8% organic revenue growth. The firm sees potential for elevated growth rates to continue and long-term margin expansion as Rollins modernizes its technology.