Deutsche Bank lowered its target price on Rentokil Initial to 405p from 465p, keeping a 'hold' rating after the group reported softer second‑quarter trading in its key North American pest‑control arm.
Rentokil Initial
03 August 2026 13:25:03
Source: Sharecast
The German bank noted that Rentokil shares fell sharply after Q2 organic growth in US Pest Services came in at 2.4%, below Deutsche Bank's 3% forecast and down from 2.8% in Q1.
Management highlighted lagging commercial demand - in contrast to stronger commercial trends reported by Rollins and Ecolab - and weaker lead generation late in Q2 and into July, mainly in termite services and concentrated in softer housing markets.
Rentokil also withdrew its 20% North America EBIT margin target for FY27, saying it would instead increase investment to accelerate organic growth. Deutsche Bank said the shift in strategy, combined with tougher US comparatives and a lack of broad‑based brand momentum, justified the target price cut.
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