UPDATE: Jefferies Initiates Coverage on Rollins at Buy on Recurring Revenues

In a report published on Wednesday, Jefferies analyst Dan Dolev initiated coverage on Rollins (NYSE: ROL) with a Buy rating and a price target of $28.

In the report, Jefferies stated, "Near term, rising healthcare costs may boost roll-ups. Most (50-90%) bed-bug clients are incremental, which can boost cross-selling. Longer term, we see a ~$30bn global opportunity and 200-500 margin upside."

Rollins closed on Wednesday at $24.33.