Microsoft sued by Australia competition regulator over Copilot, 365 pricing
Investing.com - Berenberg initiated coverage on pest control company Rentokil Initial Plc. (LON:RTO) (NYSE:RTO), currently valued at $12.4 billion, with a Sell rating and a price target of GBP2.84. According to InvestingPro data, the company maintains impressive gross profit margins of 82.3%, though it trades at a relatively high P/E multiple of 38x.
The research firm identified Rentokil as the largest global pest control company by revenue, generating $7.6 billion in the last twelve months, particularly after its acquisition of Terminix in 2022, which made it the largest pest control company in North America.
Berenberg acknowledged the potential for market-level growth in the long term for Rentokil but expressed concerns about near-term performance due to challenges related to the Terminix integration.
The firm projected that Rentokil’s organic growth will remain below the broader market in the mid-term, with North American margins likely to be flat to down.
Berenberg’s GBP2.84 price target reflects these concerns about the company’s growth trajectory and integration challenges following the significant Terminix acquisition.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.