--- title: "Rentokil: Resilient Growth, Margin Expansion Plans and Attractive Valuation Support Reiterated Buy Rating" type: "News" locale: "en" url: "https://longbridge.com/en/news/283021291.md" description: "Rentokil Initial has received a reiterated Buy rating from Bank of America analyst Virginia Montorsi, who set a price target of £510.00. The positive outlook is based on strong performance in North American Pest Control and Business Services, which exceeded forecasts. Montorsi highlights Rentokil's disciplined cost strategy and plans for margin expansion, aiming for an EBITA margin above 20% by 2027. The stock is trading below its long-term average, making it an attractive investment. Barclays also maintains a Buy rating with a £6.30 price target." datetime: "2026-04-16T14:15:43.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/283021291.md) - [en](https://longbridge.com/en/news/283021291.md) - [zh-HK](https://longbridge.com/zh-HK/news/283021291.md) --- # Rentokil: Resilient Growth, Margin Expansion Plans and Attractive Valuation Support Reiterated Buy Rating Rentokil Initial, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Virginia Montorsi from Bank of America Securities reiterated a Buy rating on the stock and has a p510.00 price target. ### Claim 30% Off TipRanks - Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions - Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks Virginia Montorsi has given his Buy rating due to a combination of factors including a solid start to the year and resilient performance in North American Pest Control. Business Services significantly outpaced internal forecasts thanks to strong pre-spring demand, new contract wins and higher-value project work, while Pest Control Services delivered steady organic growth supported by effective pricing and recovery from earlier weather-related disruptions. Montorsi also points to Rentokil’s disciplined cost and pricing strategy, limited exposure to Middle East–related cost risks, and credible efficiency plans that underpin management’s confidence in achieving an EBITA margin above 20% by 2027. With shares trading slightly below their long-term average earnings multiple and the company highlighted as one of Bank of America’s “25 stocks for 2026,” the risk‑reward profile appears attractive, justifying the reiterated Buy recommendation. According to TipRanks, Montorsi is ranked #4889 out of 12147 analysts. In another report released on April 14, Barclays also maintained a Buy rating on the stock with a £6.30 price target. ### Related Stocks - [RTO.US](https://longbridge.com/en/quote/RTO.US.md) - [RTO.UK](https://longbridge.com/en/quote/RTO.UK.md) - [BAC.US](https://longbridge.com/en/quote/BAC.US.md) - [BARC.UK](https://longbridge.com/en/quote/BARC.UK.md) - [BCS.US](https://longbridge.com/en/quote/BCS.US.md) - [BAC-Q.US](https://longbridge.com/en/quote/BAC-Q.US.md) - [BML-L.US](https://longbridge.com/en/quote/BML-L.US.md) - [BAC-L.US](https://longbridge.com/en/quote/BAC-L.US.md) - [BAC-K.US](https://longbridge.com/en/quote/BAC-K.US.md) - [BML-H.US](https://longbridge.com/en/quote/BML-H.US.md) - [BAC-N.US](https://longbridge.com/en/quote/BAC-N.US.md) - [BAC-E.US](https://longbridge.com/en/quote/BAC-E.US.md) - [MER-K.US](https://longbridge.com/en/quote/MER-K.US.md) - [BAC-O.US](https://longbridge.com/en/quote/BAC-O.US.md) - [BML-G.US](https://longbridge.com/en/quote/BML-G.US.md) - [BAC-M.US](https://longbridge.com/en/quote/BAC-M.US.md) - [BAC-B.US](https://longbridge.com/en/quote/BAC-B.US.md) - [BML-J.US](https://longbridge.com/en/quote/BML-J.US.md) - [BAC-S.US](https://longbridge.com/en/quote/BAC-S.US.md) - [BAC-P.US](https://longbridge.com/en/quote/BAC-P.US.md) - [8648.JP](https://longbridge.com/en/quote/8648.JP.md) ## Related News & Research - [Rentokil Expects FY 2026 Profit In Line With Current Market Expectations](https://longbridge.com/en/news/294317189.md) - [RTO Limited Opens Shareholder Nomination Period for Directors](https://longbridge.com/en/news/293260847.md) - [Rentokil Initial PLC Announces Annual Financial Report | RTO Stock News](https://longbridge.com/en/news/280463952.md) - [Rentokil Initial H2 Earnings Call Highlights](https://longbridge.com/en/news/277932419.md) - [Analyst Raises Rentokil Initial Price Target to 590p on Recovering Organic Growth and Valuation Re‑rating Potential](https://longbridge.com/en/news/291908657.md)