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Rentokil Initial is regaining momentum post-Terminix acquisition, with KPIs and profitability improving despite prior integration challenges. RTO is streamlining its portfolio, divesting non-core assets, and focusing on pest control and hygiene, with North America now over 60% of revenue. Valuation is historically low at 14.4x forward P/E, while dividend yield approaches 3% and a new £200 million buyback boosts total shareholder yield above 6%.
Rentokil Initial PLC (LSE:RTO) has had its price target raised by UBS after third-quarter trading showed better-than-expected stability in its key North American pest control business. The broker reiterated its 'buy' rating and increased its target to 390p from 370p, compared with a share price of 342p.
Rentokil Initial plc (RTO) Q3 2026 Sales/Trading Call Transcript
Rentokil Initial NYSE: RTO reported third-quarter revenue of $1.9 billion and organic growth of 3.4%, with Chief Executive Officer Mike Duffy describing the period as a “solid quarter” marked by progress on customer service, sales execution and business simplification.
Shares in Rentokil Initial PLC (LSE:RTO), the FTSE 100 pest control and hygiene group, rose 8% to 337.70p on Thursday morning, a gain of 23p from Wednesday's close of 314.70p, after it announced a $200 million share buyback. The buyback is expected to start imminently and be completed by the full-year results, following the agreed $230 million sale of SOLitude Lake Management to Bain Capital.
Rentokil Initial PLC (LSE:RTO), the pest control and hygiene services group, announced a $200 million share buyback on Thursday and reported third-quarter organic revenue growth of 3.4%, while confirming that it expects 2026 profit to be in line with current market expectations. Group revenue for the three months to 30 September rose 4.0% to $1,890 million, and the company expects full year profit to match current market expectations.
Rentokil announces $200 million buyback; quarterly revenue rises on improving North America business
Rentokil Initial PLC (LSE:RTO), the pest-control and hygiene services group, faces tighter pricing power and changing customer acquisition trends in the United States as weaker consumer demand weighs on the industry. Jefferies maintains a 'buy' rating on the shares with a 370p price target, implying a 17% upside from the 315.9p reference price in its 19 October research note.