BUZZ-View from the buyside: Old Mutual's Murphy buys more Rentokil
** Old Mutual Global Investors' Simon Murphy has been buying more shares in Rentokil Initial (LSE: RTO.L - news) , which is gradually refocusing its business
** PM betting on acceleration of shift towards very high return businesses, in particular Pest Control, and exit from poorly performing areas (Workwear) under CEO Andy Ransom, who he rates highly
** Murphy says Pest Control (c.40 pct of co) a "great brand"; has finally established national coverage in North America & what it needs to do now is just increase network density by buying lots of bolt-on businesses, create economies of scale
** Valuations of Pest peers underscore re-rating potential (pest control very defensive): US cos Rollins & Servicemaster trade on c.35x & 20.5x next yr's earnings, respectively, vs Rentokil on c.18x
** Alongside a considerably higher rating, Murphy sees ensuing improvements in organic growth, cash generation & returns to shareholders
** Murphy manages Old Mutual UK Equity Fund & Old Mutual UK Opportunities Fund; Rentokil accounts for 3.3 pct in both funds
** Premier AM's head of UK equities Chris White a buyer too (RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net)