JPMorgan Adjusts Price Target on Rollins to $40 From $45, Maintains Neutral Rating

Rollins (ROL) shares fell 6.5% to $30.38, a 52-week low, after Piper Sandler downgraded the stock to Neutral, citing AI-driven search trends and competitive pressures. The company reported weak lead generation in Q2 2026, attributing 50-60% of the decline to Google's AI Overviews. Management maintained full-year guidance, but investors remained concerned. The stock is down 46% year-to-date.

Piper Sandler downgraded Rollins to Neutral from Overweight, lowering its price target to $33 from $46. JPMorgan also adjusted its target to $40 from $45, maintaining a Neutral rating. Rollins' stock has declined 45.87% year-to-date.

Rollins reported weaker-than-expected Q2 results, missing estimates on adjusted EPS, revenue, and EBITDA, raising concerns about its pest control operations. The company faces operational and demand pressures, with key risks including cost inflation and macroeconomic weakness. Rollins' long-term projections include $5.0B revenue and $732.6M earnings by 2029, but analysts' outlooks vary. The stock's fair value suggests a 36% potential upside.

Rollins, Inc. reported Q2 2026 operating margin of 18.7%, down 110 bps year over year, and operating cash flow of $173 million, down 1.5%. CEO Jerry Gahlhoff said results missed expectations due to a weaker lead environment and fewer customers using digital pest-control searches. Rollins shares fell about 9.27%.

JPMorgan downgraded Rollins to Neutral from Overweight and cut its price target to $45 from $70, citing uncertainty from weakening residential demand and a slower margin recovery. It lowered fiscal 2026/2027 revenue growth forecasts to 8.7% and 8.4%, adjusted EBITDA margins to 21.9% and 22.2%, and adjusted EPS to $1.17 and $1.26. The move follows a weaker Q2 with declining lead volumes.

Piper Sandler lowered its Rollins (NYSE:ROL) stock price target to $46 from $72 and kept an “overweight” rating, citing updated expectations. Other analysts also cut targets, including Wells Fargo to $32 and UBS reaffirming $43. ROL traded at $38.51 after Q2 EPS of $0.32 vs $0.34 consensus.