01:29 PM EDT, 04/10/2024 (MT Newswires) -- Rollins (ROL) is expected to report a seasonally slow Q1, with growth likely to improve in Q2 thanks partly to warmer weather, RBC Capital Markets said in a report.

"Given that 1Q is typically a seasonally slow quarter due to weather...we expect ROL to focus on implementing a 3-4% price increase and cross-selling to drive volume growth," RBC analysts Ashish Sabadra and David Paige said.

RBC estimates Q1 revenue growth of 13.5% from a year ago, driven by residential, commercial and termite segments.

For Q2, it expects growth to improve with tailwinds from warmer weather and two broods of Cicadas.

The analysts also expect the company to invest in Commercial to drive growth, given commercial customers tend to have a

lower churn, are more profitable, and routes can be more dense.

RBC kept its outperform rating on the stock with a price target of $52.

Price: 45.20, Change: +0.19, Percent Change: +0.42