Sasol Ltd. (NYSE:SSL) is one of the 10 Stocks Making Huge Moves this Week. Sasol Ltd. soared by 26.2 percent week-on-week, hitting an over two-year high on Friday, as investors took heart from JPMorgan’s 122-percent price target upgrade for its stock. In Friday’s session alone, Sasol Ltd. (NYSE:SSL) hit its highest price of $11.51 before trimming gains to end the session just up by 6.70 percent at $11.31 apiece. This followed JPMorgan’s rating upgrade for Sasol Ltd. (NYSE:SSL) to “overweight” from “unde ...

Group 1 - Sasol Ltd. (NYSE:SSL) reached a two-year high, driven by a bullish investment sentiment and a significant price target upgrade by JPMorgan [1][2] - JPMorgan upgraded Sasol's rating from "underweight" to "overweight" and set a new price target of 209 rand, representing a 122% increase from the previous target of 94 rand [2] - The optimism surrounding Sasol is attributed to expected benefits from rising oil prices due to ongoing tensions in the Middle East and supply disruptions [2] Group 2 - JPMorgan's global commodities unit anticipates oil production cuts of 12 million barrels per day (bpd) within a week, potentially increasing to 16 million bpd in the following two weeks [3] - The Middle East and North Africa regions have already reduced production by approximately 5.5 million bpd [3] - Benchmark crude oil prices are projected to rise to $120 per barrel, with a potential increase to $250 if the Strait of Hormuz is closed for six months, impacting global oil supply [4]

Core Viewpoint - The comparison between Sasol (SSL) and Chevron (CVX) indicates that Sasol currently presents a better value opportunity for investors in the Oil and Gas - Integrated - International sector [1] Valuation Metrics - Sasol has a Zacks Rank of 2 (Buy), while Chevron has a Zacks Rank of 3 (Hold), suggesting a stronger earnings outlook for Sasol [3] - Sasol's forward P/E ratio is 6.50, significantly lower than Chevron's forward P/E of 29.57, indicating that Sasol may be undervalued [5] - The PEG ratio for Sasol is 0.92, while Chevron's PEG ratio is 1.98, further supporting the notion that Sasol is a more attractive investment based on expected earnings growth [5] - Sasol's P/B ratio stands at 0.75 compared to Chevron's P/B of 2.06, reinforcing the valuation advantage of Sasol [6] - Based on these metrics, Sasol holds a Value grade of A, while Chevron has a Value grade of C, highlighting Sasol's superior value proposition [6]

Company Performance - Oil States International (OIS) has returned 78.4% year-to-date, significantly outperforming the Oils-Energy sector, which has returned an average of 25.1% [4] - The Zacks Consensus Estimate for OIS' full-year earnings has increased by 20.6% over the past quarter, indicating stronger analyst sentiment and an improving earnings outlook [4] - OIS currently holds a Zacks Rank of 2 (Buy), suggesting it has favorable characteristics to outperform the market in the near term [3] Industry Context - Oil States International is part of the Oil and Gas - Mechanical and Equipment industry, which includes 12 companies and is currently ranked 154 in the Zacks Industry Rank [6] - The Oil and Gas - Mechanical and Equipment industry has gained an average of 23.3% year-to-date, indicating that OIS is performing better than its industry peers [6] - Another notable stock in the Oils-Energy sector is Sasol (SSL), which has returned 62.8% year-to-date and also holds a Zacks Rank of 2 (Buy) [5]

Group 1 - UBS downgraded Sasol (SSL) to Neutral from Buy with a price target of ZAR 15,500, up from ZAR 14,500 [1] - Sasol's 1H26 results indicate that the operational self-help strategy is progressing as planned, benefiting from fixed-cost discipline [1] - Management is focused on controllable levers, leading to more resilient underlying performance [1] Group 2 - Sasol's share price has increased approximately 140% from its 12-month lows [1] - The current oil price reflects the escalating conflict in the Middle East [1]

Summary of EEMEA Equity Strategy Conference Call Industry Overview - The analysis focuses on the EEMEA (Eastern Europe, Middle East, and Africa) equities, particularly in the context of geopolitical tensions in the Middle East over the past three years [1][2][11]. Key Insights Sensitive and Resilient Equities - **Sensitive Equities**: Egypt and Turkey are identified as the most sensitive equities due to their proximity to conflicts and economic dependencies. Egypt is a net oil importer and relies heavily on tourism and the Suez Canal [3][19]. - **Resilient Equities**: South African gold miners and Central and Eastern European (CEE) refiners are noted as resilient sectors. The resilience is attributed to a global flight to safety and tighter refining product markets [4][11]. Market Performance During Geopolitical Tensions - Historical data indicates that MENA equity drawdowns during geopolitical tensions average around 5% in both absolute and relative terms compared to emerging markets (EM). Markets typically recover within 1-3 weeks [5][15]. - Recent declines since the US-Israel-Iran situation began include: Saudi Arabia (-2.1%), Egypt (-5.6%), Qatar (-4.3%), and Kuwait (-2.1%) [5][21]. Sector Performance - The most resilient sectors identified include Energy, Petrochemicals, Consumer Staples, Telecommunications, and Utilities. However, Energy and Petrochemicals remain vulnerable to disruptions in the Strait of Hormuz [3][4]. Stock Performance Analysis - A detailed stock screen was conducted, identifying the top 40 most sensitive and resilient stocks in EEMEA. The analysis included performance metrics such as market capitalization and average daily trading volume [12][14]. - For instance, Talaat Moustafa Group (Egypt) and Jabal Omar (Saudi Arabia) are among the most sensitive stocks, with performance declines of -16% and -15% respectively since February 19, 2026 [12]. Historical Context - The Gulf War (1990-91) saw a significant decline of approximately 13% in Middle Eastern equities, which remained range-bound until the conflict resolution. Current sell-offs are noted to be less severe and more contained [5][15]. Additional Important Points - The UAE equity markets are set to reopen on March 4, 2026, and are particularly exposed to potential de-risking flows due to their status as the most owned MENA market among global emerging market funds [3]. - The analysis emphasizes that while the recent past provides insights, the fluid nature of geopolitical conditions means that risks may not be fully captured by historical data [2]. Conclusion - The EEMEA equity landscape is significantly influenced by geopolitical tensions, with varying impacts on different countries and sectors. Investors are advised to consider both sensitive and resilient stocks when navigating this complex environment.

Core Thesis - Sasol Limited is viewed as a significantly undervalued investment opportunity in the energy sector, trading at a substantial discount compared to its peers [2][7]. Company Overview - Sasol Limited operates as a chemical and energy company, currently trading at an enterprise value of 2.7x EBITDA, which is 60-70% lower than developed-market chemical companies like LyondellBasell and Dow [2]. - The company's share price was $7.68 as of February 12th, with trailing and forward P/E ratios of 11.64 and 7.81 respectively [1]. Market Perception and Challenges - The market has a negative perception of Sasol due to its coal-to-liquids operations, high CO2 emissions, and a junk credit rating, leading to fears of potential bankruptcy [2]. - Concerns are heightened by the anticipated "Gas Cliff" in 2028, which may result in reduced gas supplies for its Secunda facility, alongside potential carbon taxes and operational challenges [3]. Financial Fundamentals - Despite market fears, Sasol's Energy business generates significant cash flow, benefiting from a natural hedge due to costs in Rand and revenues linked to the U.S. dollar [4]. - The International Chemicals division is under pressure but has made aggressive cost cuts and margin expansions, positioning itself for recovery in the global chemical cycle [4]. Future Catalysts - A key engineering solution, the destoning plant, is expected to come online in December 2025, which could restore production above 7.1 million tons and potentially re-rate Sasol to 3.5-4x EBITDA, implying a share price of $10, with a bull case of $14 per share [5]. - Key catalysts in 2026 include updates from the destoning plant, potential dividend resumption as net debt decreases, and developments regarding the Richards Bay LNG terminal to address gas supply risks [6]. Investment Outlook - Sasol is considered a deeply asymmetric investment opportunity, with the potential for 100% upside against limited downside, making it a compelling high-risk, high-reward situation [7]. - Previous analyses have noted a 71.81% appreciation in Sasol's stock price since February 2025, highlighting long-term revenue growth and attractive valuation despite cyclical cash flow and debt concerns [8].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Sasol (SSL) - Sasol currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [3][4] - The stock has shown significant price appreciation, with a 32.97% increase over the past quarter and an 83.8% rise over the last year, compared to the S&P 500's 2.99% and 17.96% increases, respectively [7] Price Performance - Over the past week, Sasol shares increased by 9.8%, outperforming the Zacks Oil and Gas - Integrated - International industry, which rose by 4.5% [6] - The monthly price change for Sasol is 14.85%, compared to the industry's 8.38% performance [6] Trading Volume - Sasol's average 20-day trading volume is 2,356,117 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the last two months, one earnings estimate for Sasol has increased, raising the consensus estimate from $1.49 to $1.63 for the full year, with no downward revisions [10] - For the next fiscal year, one estimate has also moved upwards, indicating positive sentiment [10]

Core Insights - The focus is on generating a 7%+ income yield through investments in energy stocks while minimizing principal loss [1] Group 1: Investment Strategy - The investment strategy involves a portfolio of energy stocks and closed-end funds (CEFs) [1] - The approach includes managing risk through options [1] - The target companies are primarily international firms that have a competitive advantage and offer strong dividend yields [1] Group 2: Research and Analysis - The analysis covers both traditional and renewable energy sectors since 2010 [1] - The research provided to subscribers is more in-depth than what is available to the general public [1] - Subscribers gain early access to investment ideas, many of which are not publicly released [1]

Core Insights - The focus is on generating a 7%+ income yield through investments in energy stocks while minimizing principal loss [1] Group 1: Investment Strategy - The investment strategy involves a portfolio of energy stocks and closed-end funds (CEFs) [1] - The approach includes managing risk through options [1] - The target companies are primarily international, with a competitive advantage and strong dividend yields [1] Group 2: Research and Analysis - The analysis covers both traditional and renewable energy sectors since 2010 [1] - The research provided to subscribers is more in-depth than what is available to the general public [1] - Subscribers gain early access to investment ideas, some of which are not released publicly [1]