Goldman Flags Limited Re-Rating Potential for Sasol Limited (SSL) Amid Oil Volatility

Core Insights - Sasol Limited (NYSE:SSL) is identified as one of the undervalued chemical stocks to consider for investment according to hedge funds [1] - Goldman Sachs downgraded Sasol from Buy to Neutral, setting a price target of ZAR 118, citing a weak product price outlook that may limit earnings revisions in the near term [2][3] Financial Performance - Sasol revised its FY26 fuel sales outlook upward to a growth of 5–10% compared to FY25, an increase from the previous forecast of 0–3%, supported by stronger Natref performance and additional production from Prax South Africa [4] - Gas production volumes were revised down to a range of 0–5% below FY25 due to delays and softer demand, while global chemical revenues remain pressured [5] Operational Highlights - The destoning plant in Southern Africa reached beneficial operation in December 2025, with average sinks tracking the lower end of the 12%–14% guidance range, marking a significant milestone in coal quality enhancement [4] - Chemicals Africa showed slight sales volume improvements supported by operational gains, with further ramp-up expected in the second half of FY26 [5] Company Overview - Sasol Limited is a South African energy and chemical company that produces fuels, chemicals, and energy solutions, focusing on innovation and sustainability while exploring advanced technologies to optimize production and reduce environmental impact [6]