ICI downgraded

Investment bank ING Barings cut its rating on Imperial Chemical Industries to “hold“ from “buy“ on 27 March after the company reached its price target. ING also raised ICI“s price target to 320 p…

Investment bank ING Barings cut its rating on Imperial Chemical Industries to “hold“ from “buy“ on 27 March after the company reached its price target. ING also raised ICI“s price target to 320 pence from 308 pence to account for technical adjustments. “There is no change in our fundamental view of the stock, it has just reached its price target,” an ING Barings analyst said. ICI announced an GBP 808 million deeply-discounted rights issue on 4 February, in a move to cut a huge debt pile that had become a source of concern for shareholders. The rights issue was equivalent to just under one third of ICI“s market capitalization, and many investors said the fundraising had soothed concerns about its balance sheet.