Rentokil Initial Stock News

Stifel has upgraded Rentokil Initial PLC (LSE:RTO), the pest-control and hygiene services group, to 'buy' from 'hold' as its valuation falls to a more than decade-low. The broker cut its price target slightly to 390p from 395p, but the new target represents about 30% upside from Rentokil's 299p closing price on 2 October.

Rentokil Initial PLC (LSE:RTO) has agreed to sell its US-based SOLitude Lake Management business and Vertex Aquatic Solutions division to Bain Capital for $230 million, as the group continues to simplify its portfolio. The pest control and hygiene group expects net cash proceeds of around US$180 million after tax from the transaction, which will be completed on a cash-free, debt-free basis.

Rentokil Initial PLC (LSE:RTO), the London-listed pest control group, recorded the strongest website traffic growth among major industry brands in July, according to alternative data compiled by RBC Capital Markets. Unique visits to Rentokil's site climbed around 28.9% year on year, RBC said, though the bank cautioned that the jump was flattered by a weak comparison a year earlier.

Rentokil Initial PLC (LSE:RTO), the FTSE 100 pest control group, has overhauled its global operating structure, a move it hopes will intensify customer focus and "deliver operational excellence". The business is formalising its framework into two distinct operating divisions covering North America and a newly consolidated international unit.

UBS has reiterated its 'buy' rating on Rentokil Initial PLC (LSE:RTO) following a meeting with the pest control group's new chief executive, arguing the reaction to second-quarter results has created a sharply positive risk-reward skew. The bank keeps its 480p price target, implying 35% upside from 370p, against an upside case of 640p and a downside case of 280p.

Rentokil Initial PLC's (LSE:RTO) first-half numbers were better than the share-price reaction suggested, according to analysts, as investors focused on weakening momentum in its crucial North American pest-control business. The shares fell 19.5% to 356.8p even though adjusted pre-tax profit of $459 million beat consensus by 4%.

Rentokil Initial PLC (LSE:RTO) shares plunged 17% to 368p after the pest-control group warned of weaker residential demand in North America and abandoned a key margin target. The company said residential customer leads had softened towards the end of the second quarter and into July.