Rollins has continued to see softer demand for its pest control services due to a combination of headwinds, so investors should steer clear of the stock, according to Wells Fargo. The investment bank downgraded Rollins to underweight from equal weight. It also lowered its price target on shares to $32 from $46, implying nearly 19% downside from Thursday's close. "ROL has reported softer growth trends in its residential business over the past three quarters," analyst Jason Haas said Friday in a note to clients. "While weather trends have likely been the biggest headwind, we're concerned that other factors could be hurting the business including: 1) LLMs directing consumers to local providers and/or to resolve issues themselves, 2) Competitors marketing more aggressively, and 3) Consumers growing more economically sensitive." The company has recorded softness in consumer demand for the second quarter, driven down by lower lead volumes in residential brands like Orkin, the analyst added. Rollins posted organic growth of 5.7%, well below what the Street expected. The company's second-quarter earnings also missed analyst estimates. The company also lowered its fiscal year 2026 organic revenue growth guidance to about 6% from between roughly 7% and 8%. The lackluster results, released Thursday, led to Rollins stock losing more than 9% on the day. That's its worst daily performance since Feb. 12, when it fell 10.5%. Wells Fargo goes against consensus on the Street. Of the 20 analysts covering Rollings, 12 have a buy or strong buy rating on the stock, while 8 have a hold on it, LSEG data shows. Shares have plunged 34% year to date, vastly underperforming the overall market.