Stifel analyst Sam Dindol downgraded Rentokil Initial to Hold from Buy with a price target of 420 GBp, down from 570 GBp. The company’s fiscal 2024 guidance cut on Wednesday reflects softness in North America organic growth and an an increase in overtime expenditure, the analyst tells investors in a research note. The firm says the scale of the profit warning “has come as a significant surprise, with higher costs compounding lower than anticipated revenues.”
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