Rentokil Share Price (RTO) Gains as JPMorgan Makes Bullish Call

Rentokil Initial share price (LON:RTO) has been given a boost today following the reinstatement of coverage by JPMorgan, signaling renewed confidence in the pest control and hygiene services provider. The analyst's optimistic outlook appears to have resonated with the markets, with Rentokil making a red-to-green move YTD.

The company's shares are trading 0.9% higher through the morning, reaching 404.30p. This upward movement effectively reversed the year-to-date performance, pushing it into positive territory at 0.3%.

JPMorgan analyst Jane Sparrow initiated coverage with an ‘Overweight' rating and a price target of 477p. The firm's analysis suggests that Rentokil's improving organic growth trends are expected to continue into 2026.

A key driver behind this bullish stance is the anticipated improvement in Rentokil's cash conversion, which has been hampered in recent years by integration costs and legacy termite claims. The analyst note suggests that these headwinds are expected to abate, leading to stronger financial performance.

The JPMorgan assessment aligns with other positive analyst actions. Citigroup, for example, reiterated a ‘Buy' recommendation and raised its price target to 500p. Similarly, Bernstein upgraded Rentokil from ‘Underperform' to ‘Outperform,' setting a price target of 570p. Bernstein's upgrade was driven by confidence in Rentokil's ability to achieve structural growth, supported by industry consolidation and improvements in EBITA and cash flow.

The recent analyst upgrades, particularly the ‘Overweight' rating from JPMorgan this morning, have provided a boost to Rentokil's share price, although the name continues to underperform YTD against broader markets. Bulls will be eyeing a sustained period of growth, but will markets oblige?