UBS Reassesses Rollins (ROL) Ahead of Earnings, Maintains Neutral View

Rollins, Inc. (NYSE:ROL) is included among the 13 Best February Dividend Stocks to Buy.

On January 21, UBS lifted its price target on Rollins, Inc. (NYSE:ROL) to $65 from $61 while keeping a Neutral rating on the stock. The firm said the setup heading into fourth-quarter results looks fairly balanced. Organic growth and EBITDA are expected to come in slightly ahead of consensus estimates, with a modest pickup from the third quarter. UBS added that management’s outlook for 2026, which calls for organic growth of 7% to 8% and incremental EBITDA margins around 30%, is largely already priced in, limiting the chances of a major surprise.

At its sell-side analyst conference in December, Rollins outlined how it has been using scaled acquisitions to enter new markets, expand into additional geographies, and strengthen customer acquisition. The company also pointed to a sharp increase in shareholder returns, with its regular dividend up roughly 80% since 2022. In addition, Rollins has been active on buybacks, including a $300 million repurchase tied to a secondary offering in 2023 and another $200 million repurchase alongside its 2025 secondary offering.

Looking ahead, Rollins’ performance will hinge on its ability to retain customers, run efficiently, stay compliant with regulations, and use its scale to compete effectively. The company continues to invest in the salesforce development and marketing to defend its position against both smaller local operators and larger national competitors such as Rentokil and Ecolab.

Rollins, Inc. (NYSE:ROL) is a global consumer and commercial services company that provides essential pest and wildlife control services.

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