UPDATE: KeyBanc Capital Markets Initiates Hold on Rollins

KeyBanc Capital Markets initiates its coverage on Rollins ROL with a Hold rating due to valuation and the lack of an immediate catalyst. Despite the Hold rating, KeyBanc Capital Markets notes potential drivers to the upside for the company: "While we acknowledge ROL's significant margin expansion to date, we expect additional upside from several initiatives. We believe better customer retention due to its planned CRM system and customer survey work, as well as expansion of its highly profitable international franchises, should further bolster margins. Additionally, given ROL has a significant domestic footprint and robust infrastructure, we feel the Company stands to benefit from volume related margin expansion as route density increases." ROL closed at $20.45 on Monday.