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Sasol Stock Surges Nearly 10% After Bank of America Upgrade
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Sasol's U.S.-listed shares surged nearly 10% on September 9, 2026, following an upgrade from Bank of America Securities analyst Sashank Lanka, who changed his rating from neutral to buy and raised the price target on South Africa-listed shares to 270 rand ($18.86) from 200 rand ($12.49). Lanka cited opportunities in Sasol's oil segment that could more than double free cash flow to 33 billion rand ($2.1 billion) in the current fiscal year, then drop to 26 billion rand ($1.6 billion) in 2028. He speculated that such improvement might allow Sasol to reinstate its dividend, which was suspended in late August due to net debt exceeding the payout threshold. The article, written by Eric Volkman of The Motley Fool, notes that while Sasol has strengths, the global chemicals industry is near the bottom of a down cycle with few catalysts for recovery, warranting caution despite the positive oil operations outlook.
Source report
Eric Volkman, The Motley Fool Wed, September 9, 2026 at 4:22 PM PDT | 2 min read
Tickers: NVDA, SSL
South Africa-based chemical company Sasol (NYSE: SSL) saw its U.S.-listed equity jump sharply on Wednesday, driven largely by a recommendation upgrade from a top bank analyst. The company's American Depositary Shares (ADSs) closed the day nearly 10% higher.
Edging Into Buy Territory
Before the market opened, Bank of America Securities analyst Sashank Lanka upgraded his rating on Sasol from neutral to buy. He also raised his price target on the company's South Africa-listed shares to 270 rand ($18.86), up from 200 rand ($12.49).
According to reports, Lanka expressed optimism about Sasol's opportunities in the oil segment. He estimates these could more than double the company's free cash flow (FCF) to 33 billion rand ($2.1 billion) in the current fiscal year, before declining to a still-substantial 26 billion rand ($1.6 billion) in 2028.
With such improvement, the analyst suggested that Sasol may have enough room to reinstate its dividend. In its full-year earnings announcement at the end of August, the company stated it was effectively suspending the payout, as net debt exceeded its threshold for dividend distribution.
Caution Warranted
The global chemicals industry remains at or near the bottom of a down cycle, and a quick recovery appears unlikely.
While Sasol has several strengths as a business, a key weakness is its presence in a sector with few clear catalysts for a broad upswing. This is likely to remain a drag on the company, regardless of how well its oil operations perform. As such, caution is advised.
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