Canaccord Genuity analyst Brian McNamara has maintained their neutral stance on ROL stock, giving a Hold rating today.
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Brian McNamara’s rating is based on a combination of factors including Rollins’s recent financial performance and market positioning. The company reported mixed fourth-quarter results, with strong sales offset by weaker EBITDA, and EPS in line with expectations. Despite Rollins’s ability to gain market share, McNamara believes that its current stock price already reflects these strengths.
Additionally, while management’s guidance for 2025 shows optimism with projected organic growth and strategic M&A contributions, there are concerns about achieving targeted incremental margins. The stock trades at a premium due to its recurring revenue model and high free cash flow conversion, which supports the Hold rating. McNamara suggests that a more favorable outlook would depend on accelerated revenue growth and improved margin targets.
According to TipRanks, McNamara is a 3-star analyst with an average return of 1.0% and a 52.51% success rate. McNamara covers the Consumer Cyclical sector, focusing on stocks such as SharkNinja, Inc., Rollins, and Traeger.
In another report released today, Barclays also maintained a Hold rating on the stock with a $50.00 price target.