Rentokil Shares Can Move Higher Due to ‘Untapped Opportunity’ Says Analyst

Rentokil Initial (LON: RTO) shares could have further upside after Bank of America upgraded the pest control group to Buy from Neutral, citing an “untapped” growth opportunity and recent share price underperformance.

While the stock is up around 12% year-to-date (+17% for its ADRs), it is significantly below the highs achieved in 2023. 

BofA analyst Simona Sarli raised her price target to $34 from $28 and added Rentokil to the bank’s Europe 1 list of top investment ideas. 

She said the company is the leading player in the structurally growing North American pest control market, where long-term demand fundamentals remain attractive.

The analyst believes Rentokil still has significant scope to expand in the residential segment in North America, which BofA views as underpenetrated relative to the company’s commercial exposure. 

BofA also pointed to Rentokil’s recent share price underperformance as creating a more attractive entry point. The upgrade suggests the market may be underestimating the company’s ability to capture further market share and drive earnings growth as operational execution improves.

The more constructive stance echoes recent optimism from other analysts. In November, JPMorgan reinstated coverage of Rentokil with an Overweight rating, arguing that improving organic growth trends are likely to continue into 2026. 

JPMorgan also highlighted the prospect of stronger cash conversion, noting that this has been weighed down in recent years by integration costs and legacy termite-related claims.