1. Rollins, Inc. (NYSE:ROL)
Relative Strength Index: 22.61
5-Year Dividend Growth Rate: 21.72%
On May 29, Bernstein analyst Connor Cerniglia downgraded Rollins, Inc. (NYSE:ROL) to Market Perform from Outperform. It also lowered the firm’s price target to $52 from $70. The downgrade was driven by the resignation of CFO Ken Krause, whom Bernstein described as a “central figure behind the company’s potential margin transformation story.” The firm said it is now less willing to underwrite Rollins’ target of 30% to 35% incremental EBITDA margins, noting that progress toward that goal had been uneven under previous management. As a result, Bernstein believes the likelihood of achieving that margin target has declined. Cerniglia shared that view in a research note to investors.
During the Q1 2026 earnings call, management pointed to improving demand throughout the quarter. CEO Jerry Gahlhoff said the company delivered a strong first quarter and noted that organic growth exceeded 8% in March. He said part of that momentum came from continued investments in additional sales staff and marketing initiatives ahead of the peak season. Gahlhoff also stated that Rollins entered the busy period well prepared, with sufficient staffing across its sales, technician, and customer support teams.
Management highlighted acquisitions as another key driver of growth. Gahlhoff noted that the company recently announced the acquisition of Romex Pest Control, describing the deal as another example of Rollins’ successful M&A strategy. He said the acquisition would expand the company’s footprint in new markets and added that Romex shares a strong culture focused on both employees and customers.
Rollins, Inc. (NYSE:ROL) is a global consumer and commercial services company. Through its subsidiaries and independent franchises in more than 70 countries, the company provides pest and wildlife control services, along with protection against termite damage, rodents, and insects for residential and commercial customers.
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