BNP Paribas Exane Issues Pessimistic Forecast for Rollins (NYSE:ROL) Stock Price

Key Points

• BNP Paribas Exane lowered Rollins’ price target from $44 to $35 while maintaining a “neutral” rating, implying approximately 14.4% upside from the stock’s $30.61 opening price.
• Analyst sentiment is broadly cautious: Rollins has an average “Hold” rating and a consensus price target of $47.41, with recent target cuts from Morgan Stanley and Bank of America and a downgrade from Zacks Research.
• Rollins narrowly missed quarterly expectations, reporting $0.32 EPS versus the $0.34 consensus and revenue of $1.08 billion versus $1.09 billion, although revenue increased 7.9% year over year.

Rollins (NYSE:ROL - Get Free Report) had its price objective cut by investment analysts at BNP Paribas Exane from $44.00 to $35.00 in a report released on Tuesday, Benzinga reports. The brokerage currently has a "neutral" rating on the business services provider's stock. BNP Paribas Exane's price target indicates a potential upside of 14.36% from the stock's current price.

Other research analysts have also issued reports about the stock. Morgan Stanley cut their target price on shares of Rollins from $70.00 to $65.00 and set an "overweight" rating for the company in a report on Wednesday, July 8th. Bank of America reissued a "neutral" rating and issued a $35.00 price objective (down from $55.00) on shares of Rollins in a research note on Thursday, July 23rd. Zacks Research downgraded shares of Rollins from a "hold" rating to a "strong sell" rating in a report on Tuesday, July 28th. Weiss Ratings cut shares of Rollins from a "hold (c)" rating to a "hold (c-)" rating in a research report on Tuesday, August 11th. Finally, Citigroup assumed coverage on shares of Rollins in a report on Wednesday, July 15th. They issued a "neutral" rating and a $46.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, eleven have given a Hold rating and three have given a Sell rating to the company. According to MarketBeat, Rollins has an average rating of "Hold" and a consensus price target of $47.41.

Rollins Stock Up 1.9%

Shares of ROL stock opened at $30.61 on Tuesday. The company's fifty day simple moving average is $36.11 and its two-hundred day simple moving average is $45.40. Rollins has a 52 week low of $29.74 and a 52 week high of $66.14. The stock has a market cap of $14.73 billion, a P/E ratio of 27.82, a PEG ratio of 3.27 and a beta of 0.74. The company has a quick ratio of 0.58, a current ratio of 0.63 and a debt-to-equity ratio of 0.34.

Rollins (NYSE:ROL - Get Free Report) last issued its earnings results on Wednesday, July 22nd. The business services provider reported $0.32 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.34 by ($0.02). The firm had revenue of $1.08 billion during the quarter, compared to the consensus estimate of $1.09 billion. Rollins had a return on equity of 38.81% and a net margin of 13.55%.The company's revenue for the quarter was up 7.9% compared to the same quarter last year. During the same period last year, the firm posted $0.30 earnings per share. Analysts predict that Rollins will post 1.17 EPS for the current fiscal year.

Institutional Investors Weigh In On Rollins

A number of institutional investors and hedge funds have recently modified their holdings of ROL. Envestnet Portfolio Solutions Inc. boosted its stake in shares of Rollins by 17.9% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 11,125 shares of the business services provider's stock valued at $464,000 after purchasing an additional 1,692 shares during the period. State Street Corp increased its stake in Rollins by 3.7% in the 2nd quarter. State Street Corp now owns 13,561,228 shares of the business services provider's stock worth $566,046,000 after buying an additional 488,046 shares during the period. The Manufacturers Life Insurance Company increased its stake in Rollins by 580.4% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 1,090,688 shares of the business services provider's stock worth $45,525,000 after buying an additional 930,397 shares during the period. WINTON GROUP Ltd bought a new stake in Rollins during the 2nd quarter valued at about $3,619,000. Finally, Engineers Gate Manager LP bought a new stake in Rollins during the 2nd quarter valued at about $14,908,000. 51.79% of the stock is owned by institutional investors.

Rollins Company Profile

Rollins, Inc is a global provider of pest and termite control services for residential and commercial customers. The company helps protect homes, businesses, and other properties from insects, rodents, termites, wildlife, and other pests through inspection, prevention, treatment, and ongoing monitoring programs.

Rollins operates through a portfolio of recognized pest control brands, including Orkin, Terminix, HomeTeam Pest Defense, Western Exterminator, and Critter Control. Its services include general pest management, termite protection, mosquito and bed bug control, wildlife management, and specialized commercial pest control programs.

Founded in 1948 and headquartered in Atlanta, Georgia, Rollins serves customers across the United States and internationally.

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