Rentokil Initial shares surged 9% after the pest control and hygiene group announced a $200 million share buyback and said it expected full-year profit in line with market expectations.
Stifel, which rates the stock a buy with a 390 pence target price, called the update reassuring, noting that the organic growth gap to US peer Rollins had narrowed in the quarter.
The US-listed rival reported overnight that its own organic growth had moderated to 4.4% in the third quarter, down from 6.6% in the first quarter, with margins also under pressure.
Rentokil delivered group organic growth of 3.4% in the quarter, with North America pest control services growing 2.4%, broadly in line with the first half.
Peel Hunt, which has a hold rating and a 454 pence target, highlighted improved residential lead flow trends in September and said it expected to fine-tune organic growth assumptions and reflect the pending SOLitude disposal ahead of the analyst call.
Panmure Liberum, which has a buy rating and a 513 pence target, said the stock traded at an undeserved 40% discount to Rollins on a 2027 price-to-earnings basis and pointed to a range of potential catalysts.
The departure of chief financial officer Paul Edgecliffe-Johnson for family health reasons was noted by both Peel Hunt and Panmure Liberum, with the latter describing it as unfortunate given the current period of corporate change.
