Jefferies upgrades Rollins on sales hiring surge, sees growth ahead
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Investing.com -- Jefferies upgraded pest control firm Rollins Inc (NYSE:ROL) to Buy from Hold and raised its price target to $65 from $55 given a sharp increase in sales hiring that could signal accelerating organic growth over the next year.
Job postings for sales professionals at Rollins were up roughly 49% in 2024 and 40% in the first quarter of 2025 versus historical averages.
“We have increased confidence that the pace of organic growth can continue for the foreseeable future,” the firm wrote.
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Jefferies also lifted its 2025 and 2026 organic growth estimates for Rollins to 7.8% and 7.5%, respectively, citing strong hiring activity, higher advertising spend, and pricing execution.
It expects EBITDA margins to expand by 60 basis points to 24% in 2026, supported by top-line growth and cost leverage.
Rollins, known for its Orkin brand, is seen as a high-quality earnings compounder with potential for further margin gains and tuck-in acquisitions.
The firm’s $65 price target is based on 32 times its 2026 EBITDA estimate.
Jefferies expressed increased confidence in landscaping company BrightView, which has also boosted sales hiring. Job listings in Q1 2025 were up about 37% year-on-year, following management’s plan to expand the salesforce by 50%.
Jefferies raised its price target on BrightView to $22, citing improved organic growth prospects, EBITDA margin expansion, and potential multiple re-rating. The firm expects 2027 EBITDA of $414 million, implying a margin of 13.9%.
No significant sales hiring trends were observed at APG or Cintas (NASDAQ:CTAS), while Vestis showed gradual acceleration, the report added.
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