Rentokil Initial (LON:RTO) Stock Jumps 5.3% - Still a Buy?

Key Points

• Rentokil Initial shares climbed 5.3% to GBX 331, though trading volume was about 30% below the stock’s average daily volume.
• Analyst sentiment remains positive overall, with five Buy ratings, two Holds and one Sell; the consensus is a “Moderate Buy” with an average price target of GBX 433.25.
• The company has an £8.33 billion market capitalization and trades at a P/E ratio of 17.55, but its 200-day moving average of GBX 406.51 remains well above the current share price.

Rentokil Initial plc (LON:RTO - Get Free Report)'s share price rose 5.3% during trading on Thursday. The stock traded as high as GBX 344.70 and last traded at GBX 331. Approximately 22,289,227 shares traded hands during trading, a decline of 30% from the average daily volume of 32,024,918 shares. The stock had previously closed at GBX 314.40.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on RTO. JPMorgan Chase & Co. cut their price objective on Rentokil Initial from GBX 477 to GBX 431 and set an "overweight" rating for the company in a report on Friday, July 31st. Jefferies Financial Group reiterated a "buy" rating and issued a GBX 370 price target on shares of Rentokil Initial in a research report on Friday, October 16th. Deutsche Bank Aktiengesellschaft cut their price target on shares of Rentokil Initial from GBX 465 to GBX 405 and set a "hold" rating for the company in a report on Monday, August 3rd. Citigroup reduced their price objective on shares of Rentokil Initial from GBX 575 to GBX 550 and set a "buy" rating for the company in a research report on Friday, July 31st. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating and issued a GBX 480 price objective on shares of Rentokil Initial in a research note on Friday, September 18th. Five equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of GBX 433.25.

Rentokil Initial Stock Performance

The company has a current ratio of 1.06, a quick ratio of 1.76 and a debt-to-equity ratio of 110.37. The firm has a 50-day simple moving average of GBX 325.99 and a two-hundred day simple moving average of GBX 406.51. The company has a market capitalization of £8.33 billion, a price-to-earnings ratio of 17.55, a price-to-earnings-growth ratio of 0.56 and a beta of 0.41.

About Rentokil Initial

Rentokil Initial plc, together with its subsidiaries, provides route-based services in North America, the United Kingdom, rest of Europe, Asia, the Pacific, and internationally. It offers a range of pest control services for rodents, and flying and crawling insects, as well as other forms of wildlife management for commercial customers. The company provides hygiene services, including the provision and maintenance of products, such as soap and hand sanitizer dispensers, hand dryers, air care and purification, cubicle and surface sanitizers, feminine hygiene units, toilet paper dispensers, and floor protection mats.

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