Rentokil Initial PLC (LSE:RTO) faces a fresh test in North America as weaker online demand for one-off pest treatments points to slowing industry growth, that's according to analysts at Deutsche Bank.
London-based analysts for the German bank, in a results preview note, said they expect North American Pest Control organic growth to ease to 3% in the second quarter from 4.1% in the first.
Rival Rollins recently reported organic growth of 5.7%, below the 7.2% consensus, as fewer consumers searched digital channels for pest control services.
For Rentokil, Deutsche Bank forecasts first-half revenue of $3.53bn, up 1%, and EBIT of $562mln, up 5% and broadly in line with consensus.
DB rates the pest controller as a Hold, with a 465p price target.
