Shares in Rentokil Initial (RTO.L) have fallen dramatically from recent highs of 525.4p. Will it continue, or is this an opportunity to pick up a bargain?

• Now trading at 338.05p (at time of writing). A return to previous highs would represent a rise of 55%.
• The market often over-reacts to bad news. Traders should consider whether it is down for good reason, or is this another over-reaction?
• RTO has not yet followed the market recovery of previous sessions.
• Shares -35% from 12-month highs; +-1% from 12 month lows.

Latest News

07:42:  Rentokil Initial, the pest control group, announced that it had ceased dividend payments and removed its previous guidance from 2020. It said the spread of coronavirus is having a ‘significant impact’ on its business.

23 Mar:  Credit Suisse reiterates its neutral rating on Rentokil Initial (RTO) and reduced the target price to 360p (from 450p).

20 Mar:  HSBC has downgraded its rating on Rentokil Initial (RTO) to hold (from buy) and reduced the target price to 390p (from 515p).

04 Mar:  JP Morgan Cazenove reiterates its overweight rating on Rentokil Initial (RTO) and increased the target price to 545p (from 500p).

27 Feb:  Barclays Capital reiterates its overweight rating on Rentokil Initial (RTO) and increased the target price to 505p (from 445p).

27 Feb:  Peel Hunt reiterates its hold rating on Rentokil Initial (RTO) and increased the target price to 495p (from 460p).

Source: Bloomberg, Reuters, Alpha Terminal, FT, DJ Newswires

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