Analyst Raises Rentokil Initial Price Target to 590p on Recovering Organic Growth and Valuation Re‑rating Potential
Complete. Here is the key summaryGoldman Sachs analyst Suhasini Varanasi upgraded Rentokil Initial to Buy with a 590p price target, citing recovering organic growth since Q3 2025 and potential valuation re-rating against peer Rollins. The upgrade reflects improving fundamentals and an attractive entry point despite recent stock declines.
In a report released yesterday, Suhasini Varanasi from Goldman Sachs upgraded Rentokil Initial to a Buy, with a price target of p590.00.
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Suhasini Varanasi has given his Buy rating due to a combination of factors related to Rentokil Initial’s improving fundamentals and valuation. He highlights that organic growth, which had decelerated following the Terminix acquisition, is now showing a clear recovery trend since the third quarter of 2025, supporting his view that the company can return to mid‑single‑digit organic growth by 2027.
Suhasini Varanasi’s rating is based on the expectation that this improving growth profile will help narrow both the operational and valuation gaps versus key peer Rollins, creating scope for a share price re‑rating. In addition, he points out that the stock has declined around 12% since the first‑quarter results despite healthier top‑line momentum and robust end‑market conditions, leading him to see the current level as an attractive entry point and to raise the 12‑month price target to 590p.