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

Core Insights - Rollins Inc. (NYSE:ROL) is recognized as one of the 14 best consumer discretionary stocks to buy currently [1] - Morgan Stanley has reduced its target price for Rollins by 2.9% to $70, while maintaining an Overweight rating [1] Financial Performance - Rollins reported Q4 2025 earnings on February 11, showing organic revenue growth of 5.7%, which fell short of expectations due to adverse weather conditions [1] - Management anticipates revenue growth of 9% to 11% year-over-year (YoY) for 2026, consisting of 7% to 8% YoY organic growth and 2% to 3% YoY growth from mergers and acquisitions (M&A) [2] Profitability Outlook - The company aims to enhance its EBITDA margin by 2 to 7 percentage points, targeting margins of 25% to 30% by the end of 2026, compared to an average of 23% over the past three years [3] - In the medium term, management is setting an even more ambitious goal for EBITDA margins of 30% to 35% [3] Company Background - Rollins Inc. is an international service company specializing in pest and termite control services for both residential and commercial clients, founded in 1948 and based in Atlanta, Georgia [4]