11:10 AM EDT, 07/03/2024 (MT Newswires) -- Rollins (ROL) is set for a "seasonally strong" Q2, driven by residential pest control growth and sustained momentum in the company's commercial and termite/ancillary services, RBC Capital Markets said in a Tuesday note.

RBC estimated a 7.6% Q2 organic revenue growth for the company, with increases across its residential, commercial and termite segments. The quarter is also expected to benefit from cicadas' emergence in parts of the US, RBC said.

For the full year, RBC estimated a 7.4% organic revenue growth on the back of pricing increases, cross/upselling and "robust" demand for the company's services. RBC also said it expects Rollins to invest in its commercial segment to drive growth as commercial customers provide larger transactions that are more profitable.

RBC maintained its outperform rating on Rollins, with a $52 price target.

Shares of Rollins added more than 1% in recent market activity.

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