Rentokil Initial (RTO.L) 25-03-20
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.
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