Morgan Stanley Trims Rollins (ROL) Target Price to $70

Rollins Inc. (NYSE:ROL) is one of the 14 Best Consumer Discretionary Stocks to Buy Right Now.

Morgan Stanley, on February 14, trimmed its target price on Rollins by 2.9% to $70 (from $72), but kept its Overweight call. This change in target comes a couple of days after Rollins released its Q4 2025 earnings, on February 11, which showed organic revenue growth of 5.7%, missing expectations, due to poor weather in the quarter.

In the same report, Rollins’s management provided both its short-term and medium-term financial outlook. For revenue, they expect 9% to 11% YoY growth in 2026 (vs. a 12% average over the last three years), broken down as follows: 7% to 8% YoY organic growth and 2% to 3% YoY M&A growth. In the medium-term, management is aiming for above-market organic growth, supplemented by M&A growth.

As for profitability, management is aiming to improve its EBITDA margin by 2 to 7 percentage points, bringing margins to 25% to 30% by the end of 2026 (vs. an average of 23% over the past three years). The target becomes even more aggressive in the medium term, with management aiming for EBITDA margins of 30% to 35%.

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Rollins Inc. (NYSE:ROL) is an international service company that provides pest and termite control services to residential and commercial customers. The company is based in Atlanta, Georgia, and was founded in 1948 by John W. Rollins Jr. and O. Wayne Rollins Sr.

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Disclosure: None. This article is originally published at Insider Monkey.