Morgan Stanley Cuts Rollins Target to $70 After 5.7% Q4 Revenue Growth Miss
Morgan Stanley cut its 12-month target for Rollins by 2.9% to $70 while maintaining an Overweight rating after Q4 2025 results showed 5.7% organic revenue growth missing forecasts due to weather. Management forecasts 9-11% revenue growth in 2026 (7-8% organic, 2-3% M&A) and aims to boost EBITDA margins to 25-30%.
1. Morgan Stanley Target Cut
Morgan Stanley reduced its 12-month price objective for Rollins by 2.9% from $72 to $70 while maintaining an Overweight rating based on the company’s performance outlook.
2. Q4 2025 Earnings Results
Rollins reported Q4 2025 organic revenue growth of 5.7%, falling short of expectations as adverse weather conditions weighed on termite and pest control services during the quarter.
3. 2026 Outlook and Profitability Goals
Management forecasts 9-11% revenue growth in 2026—7-8% organically and 2-3% from acquisitions—and targets EBITDA margins of 25-30% by year-end, with medium-term ambitions rising to 30-35%.