BofA Ups British Pest Control Company Rentokil Initial to Buy

06:49 AM EST, 12/19/2025 (MT Newswires) -- Rentokil Initial (RTO.L) was upgraded to buy from neutral as BofA Global Research added the British pest control services company to its 25 stocks for 2026 list and Europe 1 list of top ideas. "Since Jan-25, its shares have largely underperformed the SXPN index (-18% in euros), leaving RTO trading 10% below history at <20x P/E (26E) for an EPS CAGR of 12% in 25E-28E. Positioning is light (c7% short interest, 40 days to cover) and, with more visibility finally on the Terminix integration, we see scope for a rerating in 2026," analysts wrote Thursday. "Rentokil is the leading player in the North American pest control market. It accounts for half of the global market estimated to be worth $26bn. ... In the US specifically, we see a sizable growth opportunity for RTO from the residential & termites segment." The stock's price objective was also increased to 5.10 pounds sterling from 4.25 pounds, with a 17.9% upside. The EPS expectations for 2026 and 2027 were also raised.