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

Sasol Limited (NYSE:SSL) is among the 9 Undervalued Chemical Stocks to Buy According to Hedge Funds.

Sasol Limited (NYSE:SSL) is one of the best chemical stocks on our list.

TheFly reported on February 9 that Goldman Sachs downgraded SSL from Buy to Neutral and set a price target of ZAR 118. The firm cited a weak product price outlook, which is expected to constrain upward earnings revisions in the near term.

Goldman also noted that, amid ongoing volatility in oil prices and broader macroeconomic conditions, the stock has limited potential for a significant re-rating, making it less attractive compared with other sector peers. Despite any operational strengths, the combination of price pressures and external market risks has led the firm to adopt a more cautious view on SSL’s near-term performance.

Earlier on January 22, Sasol Limited (NYSE:SSL) revised its FY26 fuel sales outlook upward to 5–10% growth compared with FY25, an increase from the prior 0–3% forecast. The improvement is supported by stronger Natref performance and additional production volumes from SSL’s Prax South Africa capacity. On the Southern Africa coal side, the destoning plant reached beneficial operation in December 2025, with average sinks now tracking the lower end of the 12%–14% guidance range, marking a key milestone in coal quality enhancement.

In contrast, gas production volumes were revised down to 0–5% below FY25 due to PSA and Central Térmica de Temane delays and softer demand. Chemical revenues remain pressured globally, although Chemicals Africa showed slight sales volume improvements supported by operational gains, with further ramp-up expected in the second half of FY26.

Sasol Limited (NYSE:SSL) is a South African energy and chemical company producing fuels, chemicals, and energy solutions. It focuses on innovation and sustainability, supplying industrial markets globally while exploring advanced technologies to optimize production, reduce environmental impact, and support the transition toward cleaner energy solutions.

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