Rentokil Initial's 15min chart shows RSI Overbought, KDJ Death Cross signal.

Rentokil Initial's 15-minute chart has triggered a RSI (Relative Strength Index) overbought signal and a KDJ (Stochastic Oscillator) death cross at 08/07/2025 13:00. This indicates that the stock price has risen too rapidly and is now unsupported by fundamentals, suggesting a shift in momentum towards the downside and a potential decrease in stock price.

Rentokil Initial plc (LON: RTO) shareholders experienced a 2.5% decline in share price following the release of its latest half-yearly results. The company's revenues for the period were in line with analyst forecasts, reaching UK£2.7 billion. However, statutory earnings per share (EPS) fell 18% short of expectations, recording UK£0.056 per share [1].

Analysts' expectations for the next year have been revised downward. The consensus revenue forecast for 2025 is UK£5.36 billion, indicating a 3.1% decline compared to the previous 12 months. EPS is expected to rise by 28% to UK£0.12. Notably, this represents a significant reduction from the previous year's EPS forecast of UK£0.14 [1].

Technical indicators have also raised concerns. On July 02, 2025, Rentokil Initial's 15-minute chart triggered an RSI (Relative Strength Index) overbought signal and a KDJ (Stochastic Oscillator) death cross. This suggests that the stock price has risen too rapidly and is now unsupported by fundamentals, indicating a potential shift in momentum towards the downside [2].

Despite the earnings miss, the consensus price target remains largely unchanged at UK£4.23. Analysts' price estimates range from a high of UK£5.50 to a low of UK£3.00, indicating varied opinions on the stock's future. However, the narrow range of estimates suggests that the outcome is not entirely unpredictable [1].

Revenue growth is expected to slow, with an annualized decline of 6.1% by the end of 2025. This is a significant reduction from the company's historical growth rate of 19% over the past five years. In comparison, other companies in the same industry are expected to see their revenue grow by 3.5% per year [1].

In conclusion, while there were no major changes to revenue estimates, the EPS estimates were significantly reduced, reflecting a decline in sentiment following the latest results. The long-term trajectory of the company's earnings is crucial, and investors should monitor the latest analyst estimates and technical indicators to make informed decisions.

References:
[1] https://finance.yahoo.com/news/rentokil-initial-plc-earnings-missed-072731036.html
[2] Provided source materials