After a rally that’s seen Sasol’s stock price double this year, analysts are becoming wary of the South African oil and chemicals company.
The stock has only two buy ratings left out of nine analyst assessments, following recent downgrades by Nedbank Group and Citigroup. That’s the lowest proportion since 2019, according to data compiled by Bloomberg.
The world’s biggest manufacturer of fuel and chemicals from coal, Sasol has benefitted from the rise in oil prices following the outbreak of the Iran war.
It’s soared 45% since the start of the conflict, making it the best-performing stock on the FTSE/JSE All Share Index this year.
Brent crude oil is up 36% since the start of the war, providing a windfall to Sasol as its own petroleum products are benchmarked to international prices.
But the company’s coal-heavy operations carry growing carbon liability as global regulation tightens, and the depletion of Mozambican gas
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