Rentokil Initial shares sparked on Thursday after Bank of America upgraded the pest control firm to ‘buy’ from ‘neutral’ and lifted the price target to 510p from 425p, citing recent share price underperformance.
Source: Sharecast
The bank said the underperformance of the shares this year leaves the valuation 10% below history.
BoA, which added Rentokil to its ‘Europe 1 list’ of top ideas, said it believes the company still has an "untapped" opportunity in residential.
It also said that with more visibility on the Terminix integration, there is scope for a re-rating in 2026.
At 1500 GMT, the shares were up 3.3% at 447p.
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