Rentokil Initial PLC's stock plummeted 9.34% in pre-market trading on Thursday, following concerns raised by analysts at J.P. Morgan that the company's 2027 margin guidance might be too ambitious.

According to the analysts, while investors may be relieved that Rentokil has confirmed 2025 consensus expectations, the company's goal of a 20% increase in margins for its North American operations "might be difficult to reach, unless growth surprises materially on the upside."

The analysts note that while Rentokil should be able to achieve the margins guidance over time, the timeline for the North America margin target appears ambitious based on current projections.