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UBS has upgraded Rentokil Initial PLC to a 'buy' rating, signaling increased confidence in the company's growth prospects. The Swiss bank set a new price target of 540p, representing an approximate 11% upside from the current trading price of 488p. This upgrade is driven by expectations that a reshaping of the North American pest control strategy will drive significant volume growth over the next 12 months. Analysts believe these operational changes could restore the company's status as a long-term compounder for investors. Positive investor feedback regarding the strategic turnaround has further bolstered the bank's confidence in the stock's future performance. The move comes as Rentokil focuses on improving its financial execution within its primary global market.
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