Shares in Rentokil Initial PLC (LSE:RTO) were given a short-lived boost by analysts at Deutsche Bank on Monday, who wondered if there might be improving organic trends in Rentokil's North America pest control business.
The analysts, which nudged up their target price to 435p from 425p and reiterated their 'buy' rating, said this was based on analysis of several market indicators, including weather, employment and Google Trends in the US.
However, the signs are only "tentatively supportive" of improving trends for the FTSE 100 group's largest ("and over recent years most problematic") segment, which was significantly expanded since the Terminix acquisition was completed in October 2022.
"We are particularly encouraged by signs of an inflection in Terminix web search traffic," they wrote in a note to clients, saying this has been "a persistent issue".
"Pest control search activity more broadly is at the highest level in five years, which we view as an implicit signal that the US consumer (and SME) is relatively healthy despite second-order tariff impact concerns."
The shares rose 1.2% in morning trading to lead the FTSE 100, but by the afternoon were in the red, down 0.7% at 354.8p.