William Blair and BofA reaffirm Buy rating on Rollins, expect growth to recover in 2027

Summary

William Blair and BofA Securities have reaffirmed their ‘Buy’ ratings for Rollins (ROL) despite a Q2 EBITDA miss and macro-driven softness in residential demand Tip Ranks+ 2. While revenue reached $1.1 billion, near-term pressures on digital leads have led analysts to shift their full growth recovery expectations to 2027 Tip Ranks. BofA maintains a $55 price target, viewing the current weakness as transitory Tip Ranks.

Impact Analysis

So basically, the street is telling us to look past a messy Q2 and play the long game. The interesting part isn’t the EBITDA miss—it’s the divergence in their sales channels. While relationship-based business is holding up, Rollins is getting squeezed by soft digital lead volumes and broader macro pressure on residential demand Reuters.

I’d read William Blair’s 2027 recovery timeline as a sign that they don’t expect a quick fix for the consumer environment Tip Ranks. However, the ‘Buy’ reiterations from both Blair and BofA (with a $55 target) suggest they view the current weakness as an execution hiccup in customer acquisition rather than a crack in the defensive pest-control moat Tip Ranks.

The market might be focused on the near-term margin pressure, but the underlying ‘sticky’ revenue remains intact. If you’re a PM looking for a defensive compounder, this pullback is a gift, provided you have the stomach to wait out the macro noise. The trade here is betting that bugs don’t care about inflation, even if homeowners are currently hesitating on the initial digital click.