Market Overview

ServiceMaster A Leader In 'Recession-Resistant' Pest Control, Buckingham Says In Positive Initiation

ServiceMaster A Leader In 'Recession-Resistant' Pest Control, Buckingham Says In Positive Initiation

ServiceMaster Global Holdings, Inc. (NYSE: SERV) remains a leader in the recession-resistant pest control market through its Terminix brand and should remain competitive, according to the Buckingham Research Group. 

The Analyst

Buckingham’s James Clement initiated coverage of ServiceMaster with a Buy rating and $64 price target.

The Thesis

ServiceMaster’s Terminix brand is an industry leader in the $12-billion pest control market, Clement said in the initiation note. 

The company, along with competitors Ecolab Inc (NYSE: ECL) and Orkin parent company Rollins, Inc. (NYSE: ROL), generate 30 percent of industry revenue and hold strong positions in the sector, he said.

“The remaining competitors are typically small 'mom-and-pop' operators with significant dis-economies of scale that often lack the resources to remain competitive.”

Terminix has an 80-20 split between commercial and residential pest control services, giving it a strong standing in a “recession-resistant” market, the analyst said.

ServiceMaster’s American Home Shield spinoff will “likely unlock some value” Clements said, noting that despite a capital-light model, the home warranty company's growth has “far outpaced anything in pest control." 

Price Action

ServiceMaster shares were up 1.95 percent at $55.85 at the close Wednesday. 

Related Links:

Orkin's Top 10 Bed Bug Cities: Did Your Hometown Make The List?

Benzinga Pro's 5 Stocks To Watch Today

Latest Ratings for SERV

Dec 2019MaintainsEqual-Weight
Nov 2019Initiates Coverage OnBuy
Oct 2019MaintainsNeutral

View More Analyst Ratings for SERV
View the Latest Analyst Ratings

Posted-In: American Home Shield Orkin TerminixAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga


Related Articles (ECL + ROL)

View Comments and Join the Discussion!

Latest Ratings

TSCOPiper SandlerMaintains119.0
UNPBMO CapitalMaintains200.0
UNPArgus ResearchMaintains205.0
ISRGJP MorganMaintains665.0
EHTHRBC CapitalMaintains132.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at