Deutsche Bank downgraded Rentokil Initial to "hold" from "buy" on Tuesday, slashing its price target to 465 pence from 505 pence. The revision follows a more than 2% drop in the shares, which closed at 459.30 pence, as analyst James Beard cited a persistent gap in growth and profitability versus international peers.

The brokerage's note, titled "Crawling back into the woodwork," argues the pest control leader is "significantly under-earning" despite its market position. Beard stated the business "should deliver growth at least in-line with the industry and a margin profile that befits a market leader," implying current performance is inadequate.

With a new chief executive incoming, Deutsche Bank awaits a concrete plan to close the peer gap. The bank cautioned that necessary investments to boost organic growth could pressure near-term forecasts. The stock now trades just below the new 465 pence target, reflecting diminished analyst confidence in an imminent turnaround.