UBS says Rentokil investor feedback broadly positive following upgrade to buy

UBS has shared the key investor debates following its recent upgrade of Rentokil Initial PLC (LSE:RTO) to 'buy', with a 12-month price target of 540p, implying upside of around 11% from the current share price of 488p. The Swiss bank upgraded the pest control and hygiene services group on the basis that a reshaping of its North American pest control strategy could inflect volumes over the next 12 months, supporting what UBS described as the re-emergence of a valuable long-term compounder.