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(Sharecast News) - Goldman Sachs upgraded Rentokil Initial on Tuesday to 'buy' from 'neutral' and lifted the price target to 590p from 515p.
The bank said it believes the organic growth inflection in North America, which started in the third quarter of 2025, is sustainable with a potential to reach mid-single digit levels by 2027. "We see this improved growth allowing the company to gradually close the growth and valuation gap to peer Rollins and drive a share price re-rating," it said.
Goldman said its estimates are modestly ahead of Visible Alpha consensus in 2026/27 on EBITA as it sees Rentokil benefiting from delivery on self-help and re-investments into its footprint, reversing the slowdown seen after the closure of the Terminix deal in 2022.
"We note that the shares have been weak since 1Q results (down circa 12%), despite the steady improvement reported on the top line, and given the solid end market trends, we see this as a good entry point into the name," the bank said.
At 1422 BST, the shares were up 1.8% at 452.60p.
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