Rollins: Increasing Fair Value Estimate by 19%; Shares Remain Overvalued

We are awarding Rollins a wide intangible assets moat for brands in addition to its existing wide cost advantage moat after transferring coverage to a new analyst. Rollins' leading brand, Orkin, garners an intangible asset moat as it capitalizes on industry-leading awareness to achieve organic sales growth at a lower cost. Rollins’ scale is a cost advantage, as its local route density and ability to spread fixed costs across a larger revenue base contribute to industry-leading margins. Furthermore, we are increasing our fair value estimate by 19% to $44 per share, reflecting higher revenue growth and margin expectations, although the shares remain overvalued.