Deutsche Bank lowers target price on Rentokil Initial

(Sharecast News) - Deutsche Bank cut its target price on Rentokil Initial to 642p from 676p, saying recent trading softness in the US pest‑control business had prompted a modest reduction in estimates. Analyst Dominic Edridge said Rentokil continued to see weaker conditions in the third quarter, with US pest‑control organic growth of 2.2%, below expectations of around 4%.

DB also noted that the softer June performance flagged at the half‑year stage had persisted, leading the group to trim its North America pest‑control margin guidance to 18.5% to 19.0% from 19.5%, although the 16.5% group margin target was maintained.

Deutsche Bank, which kept its 'buy' rating on the sock, said the main issue was weaker new consumer customer acquisition, which had weighed on the group's performance.



Reporting by Iain Gilbert at Sharecast.com