Rollins (ROL) is positioned for a stronger Q2 as weather-related headwinds fade and the pest-control company enters its peak selling season, Morgan Stanley said Wednesday in a report.

Morgan Stanley said it is bullish ahead of the quarter, citing positive demand signals, an expected pickup in organic revenue growth, and improving incremental margins.

Organic growth is expected to rise 60 basis points to 7.2% in Q2 from Q1, with incremental margin improving to 26%, up from 9% in the prior quarter, the report said.

"Positive web traffic data, improved weather conditions, and positive indicators to start the selling season give us further confidence heading into the quarter," Morgan Stanley said.

Winter-weather headwinds and the stock's pullback following the departure of Chief Financial Officer Ken Krause create an "attractive entry point into one of the highest-quality businesses with the most durable growth profile" in business services, the report said.

Morgan Stanley cut its price target on Rollins stock to $65 from $70 and reiterated its overweight rating.

Price: 44.44, Change: +0.82, Percent Change: +1.88