Rollins' (ROL) organic growth cadence may take time to fully rebuild after the Q2 shortfall affected the recurring and one-time businesses, UBS said in a note Thursday.
The brokerage said search, digital and inbound traffic slowed in May and early June, negatively affecting both the businesses.
UBS said several items are encouraging, including that it does not think the business is broken, the 2026 guidance overhang was removed and valuation in the 20x earnings before interest, taxes, depreciation and amortization range could provide some support.
UBS maintained the company's neutral rating and lowered the price target to $43 from $50.
Price: $38.67, Change: $-0.77, Percent Change: -1.97%