Rentokil’s recovery might be fast-tracked following the appearance on the share register of US billionaire Nelson Peltz, suggest analysts at US bank Jefferies.
The bank was already keen on the pest control group due to earnings upside from synergies and the underlying earnings power of the combined Rentokil/Terminix business, improving momentum and material valuation upside as integration risk falls.
Peltz’s emergence might accelerate this, though the near-term focus remains on Terminix integration and accelerating US growth.
The billionaire’s stake also reignites the debate around a potential shift in listing to the US given Pelz’s vehicle Trian's recent involvement in Ferguson (a 6% stake built ahead of its US listing),
First-half results are due on 25 July, in the meantime 'buy' with a 600p target, remains teh view of Jeffries.