Reiterating Buy on Rentokil Initial: Strong U.S. Outperformance, Terminix Integration Benefits, and Structural Pest Control Tailwinds Support Upside to 510p Target

In a report released today, Simona Sarli from Bank of America Securities reiterated a Buy rating on Rentokil Initial, with a price target of p510.00.

Simona Sarli has given his Buy rating due to a combination of factors, including Rentokil Initial’s stronger-than-expected performance in North America and clear evidence that the Terminix integration is starting to deliver. Organic growth in the key U.S. business exceeded market forecasts, digital lead generation is closing the gap with Rollins, and recent results support management’s ability to execute its new marketing strategy effectively.

In addition, the company reaffirmed guidance that aligns with or exceeds consensus, particularly on 2026 profit and a >20% EBITA margin target in North America, with BofA’s 2027 profit view sitting 5% above the Street. Sarli also highlights the structural appeal of the pest control market, its defensive, non-discretionary nature, and substantial untapped residential and termite opportunities in the U.S., all of which underpin upside to the current valuation and justify the reiterated 510 GBp price objective.

In another report released yesterday, Barclays also reiterated a Buy rating on the stock with a £5.50 price target.