Rentokil Initial (NYSE:RTO) Stock Rating Cut to "Equal Weight" at Morgan Stanley

Key Points

• Morgan Stanley downgraded Rentokil Initial from “overweight” to “equal weight,” adding to mixed analyst sentiment.
• Despite several recent rating cuts, the stock retains a consensus “Moderate Buy” rating with an average price target of $31.90.
• Shares opened at $20.50, near their 52-week low of $20.07 and below both the 50-day and 200-day moving averages.

Rentokil Initial (NYSE:RTO - Get Free Report) was downgraded by equities research analysts at Morgan Stanley from an "overweight" rating to an "equal weight" rating in a note issued to investors on Tuesday, MarketBeat.com reports.

A number of other research firms have also weighed in on RTO. Weiss Ratings lowered Rentokil Initial from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday, August 20th. Investec upgraded shares of Rentokil Initial to a "buy" rating in a research report on Wednesday, September 23rd. Wall Street Zen cut shares of Rentokil Initial from a "buy" rating to a "hold" rating in a research note on Monday, July 20th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating on shares of Rentokil Initial in a report on Monday, August 3rd. Finally, BNP Paribas Exane cut shares of Rentokil Initial from an "outperform" rating to a "neutral" rating and set a $26.70 target price on the stock. in a research note on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $31.90.

Rentokil Initial Price Performance

Shares of NYSE RTO opened at $20.50 on Tuesday. Rentokil Initial has a fifty-two week low of $20.07 and a fifty-two week high of $34.67. The company has a current ratio of 1.16, a quick ratio of 1.07 and a debt-to-equity ratio of 0.76. The stock has a fifty day moving average of $24.02 and a 200-day moving average of $28.78.

Hedge Funds Weigh In On Rentokil Initial

A number of large investors have recently added to or reduced their stakes in the business. Royal Bank of Canada lifted its position in Rentokil Initial by 87.6% in the first quarter. Royal Bank of Canada now owns 197,383 shares of the company's stock valued at $6,213,000 after purchasing an additional 92,149 shares during the last quarter. QRG Capital Management Inc. bought a new position in shares of Rentokil Initial in the first quarter worth approximately $1,079,000. Assetmark Inc. grew its holdings in shares of Rentokil Initial by 29.0% in the first quarter. Assetmark Inc. now owns 837,035 shares of the company's stock worth $26,350,000 after purchasing an additional 188,190 shares during the last quarter. Janus Henderson Group PLC increased its stake in shares of Rentokil Initial by 3.0% in the first quarter. Janus Henderson Group PLC now owns 16,591,965 shares of the company's stock worth $522,329,000 after buying an additional 490,885 shares during the period. Finally, Bank of America Corp DE increased its stake in shares of Rentokil Initial by 60.7% in the first quarter. Bank of America Corp DE now owns 6,650,998 shares of the company's stock worth $209,373,000 after buying an additional 2,511,135 shares during the period. Hedge funds and other institutional investors own 9.91% of the company's stock.

About Rentokil Initial

Rentokil Initial plc is a United Kingdom-based business services company specializing in pest control, hygiene and workplace services. Through its pest control operations, the company provides inspection, prevention and treatment programs for residential, commercial and industrial customers, addressing insects, rodents, birds and other pests.

The company also supplies hygiene and washroom services, including sanitary products, restroom equipment, air-care systems and related maintenance programs.

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