Rentokil: Revisiting the revenue revival

研报英文原文证据摘录

Rentokil: Revisiting the revenue revival

16 June 2026

Will Kirkness

+44 20 7676 8355

European Business Services will.kirkness@bernsteinsg.com

Rentokil Initial Filippo Giardini

+44 20 7762 4723

Rating filippo.giardini@bernsteinsg.com

Outperform

Price Target

RTO.LN 565.00 GBp (576.00 OLD)

We frame the core debate around Rentokil’s ability to restore organic growth, particularly in

Close Date 12 Jun 2026

North America Pest (~60% of group revenues). Our analysis suggests underlying demand

RTO.LN Close Price (GBp) 453.60

remains structurally resilient at c.5%, with pricing at c3%. We see a pathway back to c.5%

Price Target (GBp) 565.00

organic growth, driven by improving retention, sales execution, and satellite branches, with

Upside/(Downside) 25%

upside to ~7% in a blue-sky scenario. With PBT estimates 5% above consensus and a SOTP

52-Week Range 506.80/334.80

derived ~565p PT (c25% upside) we reiterate Outperform

EDME 1,573.57

Strategy has pivoted decisively from cost synergy extraction to revenue recover. FYE Dec

Integration of Terminix drove branch consolidation, brand rationalization and operational Div Yield 2.0%

disruption, weighing on customer metrics and growth. Management has now reversed Market Cap (GBP) (M) 11,541

course: rebuilding local density, reinvograting multiple brands (~30 covering >90% of EV (GBp) (M) 19,448

revenues), and reinvesting in marketing and sales execution. Performance YTD 1M 6M 12M

Absolute (%) 2.1 (3.3) 6.3 31.2

Retention and local execution are stabilising, with early indicators turning EDME (%) 7.0 4.7 9.2 16.1

incrementally positive. Our analysis of the North American contract portfolio (c.40% of Relative (%) (4.9) (8.0) (2.9) 15.1

group revenues) shows retention as the key value driver.