Bernstein analyst Connor Cerniglia downgraded Rollins to Market Perform from Outperform with a price target of $52, down from $70. The firm cites the resignation of CFO Ken Krause for the downgrade, saying he was a "central figure behind the company's potential margin transformation story." Bernstein is now less willing to underwrite Rollins's 30%-35% incremental EBITDA margin target, which it notes "showed uneven progress" under prior management. The odds of achieving this target is now lower, the analyst tells investors in a research note.
