Wells Fargo downgrades Rollins to underweight, cuts price target to $32

According to CNBC, Wells Fargo downgraded Rollins to underweight from equal weight and cut its price target on the stock to $32 from $46, implying nearly 19% downside from Thursday's close. Analyst Jason Haas said Rollins has posted softer growth in its residential business over the past three quarters and that weaker weather, more aggressive competitor marketing and higher consumer price sensitivity may be weighing on demand. Rollins said second-quarter consumer demand softened as lower lead volumes hurt residential brands such as Orkin. The company reported organic growth of 5.7%, below Street expectations, and its second-quarter earnings missed analyst estimates. Rollins also trimmed its fiscal year 2026 organic revenue growth guidance to about 6% from roughly 7% to 8%. The stock fell more than 9% on Thursday, its worst daily performance since Feb. 12, and has dropped 34% year to date.