Rentokil Initial PLC (LSE:RTO) is no longer on UBS’s sell list, which has said it is easing up on its negative view of the acquisition of US group Terminix.
“We have been Sell-rated on Rentokil throughout the entirety of the Terminix integration, and continue to see risks to achieving mid-term targets as the NA Pest business transitions towards an unproven 'large branch' model.
“However, a near 25% pullback since the third quarter 2023 growth slowdown has ignited a new debate around value and strategic change – particularly following recent activist involvement.
“As a result, our PT increases to 480p (from 395p), and so we upgrade our rating to 'neutral'.”