Sasol Limited (SSL) Cut to Equal-weight Amid Cash Flow Concerns

Sasol Limited (NYSE:SSL) ranks among the best specialty chemicals stocks to invest in. In a warning that recent share gains are concealing weak free cash flow forecasts and long-term risks to its South African business, Morgan Stanley lowered the rating of Sasol Limited (NYSE:SSL) from Overweight to Equal-weight on September 22.

Improved cash flow in the second half, advancements in cost-cutting initiatives, and hope for China’s policy changes all contributed to the stock’s recent increase. However, according to the firm, a large portion of the debt reduction in fiscal 2025 was due to short-term variables such dividend revenues, working capital unwind, and a Transnet payment.

Even while refining margins helped somewhat, the bank predicted that longer-term risks would undo some of Sasol’s gains.

Sasol Limited (NYSE:SSL) is a global integrated energy and chemical company that operates via two primary divisions: Energy and Chemical, with activities in 33 countries.

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Disclosure: None. This article is originally published at Insider Monkey.