Sasol Stock Surges Nearly 10% After Bank of America Analyst Upgrades Rating
South African chemical company Sasol (NYSE: SSL) saw its U.S.-listed shares rise nearly 10% after an analyst at Bank of America upgraded the stock from neutral to buy. The upgrade was driven by optimism around Sasol's potential in the oil segment, with expectations that free cash flow could more than double this fiscal year and remain strong through 2028. Analyst Sashank Lanka raised his price target for Sasol’s South African-listed shares from 200 rand to 270 rand ($18.86). He also noted the potential for Sasol to reinstate its dividend, which was suspended in August due to high net debt exceeding payout thresholds. Despite positive momentum, analysts caution that the global chemicals industry remains near a cyclical low with no clear signs of an imminent recovery. This could limit broader gains regardless of improvements within Sasol’s oil operations.
Tickers: $SSL