Stock Track | Rentokil Initial PLC Plummets 9.61% on Concerns Over Ambitious Margin Guidance

Stock Track
06 Mar

Rentokil Initial PLC's stock plummeted 9.61% in Thursday's pre-market trading session, following concerns raised by analysts at J.P. Morgan that the pest-control and hygiene services provider's 2027 margin guidance might be too ambitious.

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

The analysts acknowledged that Rentokil should eventually be able to achieve its margins guidance over time. However, they expressed doubts about the timeline for reaching the North America margin target based on current projections.

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