Rentokil: Jefferies initiates with 'hold' rating.
(CercleFinance.com) - Jefferies initiates its coverage of the Rentokil stock with a "hold" rating and a target price of 335 pence, suggesting investors "take a breather" on the business service provider's stock.
“Rentokil's stock has rallied c. 415% since 2012; however, we believe that a tighter balance sheet, rising M&A valuations, and opaque margin progression warrant a pause in the rally,” the broker deems.
The broker expects that the British group will increase its revenues in a range of 5% to 8% in 2018, with no apparent catalyst for an expansion in multiples.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
“Rentokil's stock has rallied c. 415% since 2012; however, we believe that a tighter balance sheet, rising M&A valuations, and opaque margin progression warrant a pause in the rally,” the broker deems.
The broker expects that the British group will increase its revenues in a range of 5% to 8% in 2018, with no apparent catalyst for an expansion in multiples.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.