Goldman Sachs Cuts Sasol Target to ZAR118 with 5–10% Fuel Growth Forecast
Sasol was downgraded by Goldman Sachs from Buy to Neutral with a ZAR118 price target, citing weak product prices and limited re-rating potential due to oil volatility and macro risks. The company raised its FY26 fuel sales growth outlook to 5–10% and commissioned its destoning plant in December 2025.
1. Goldman Sachs Downgrade
Goldman Sachs downgraded Sasol from Buy to Neutral and set a ZAR118 price target, citing a weak product price outlook that will constrain upward earnings revisions and limit the stock’s re-rating potential under current oil price volatility and macroeconomic risks.
2. Revised FY26 Fuel Sales Outlook
Sasol raised its FY26 fuel sales growth forecast to 5–10% from an earlier 0–3%, driven by stronger performance at its Natref refinery and additional volumes from its Prax South Africa facility.
3. Operational Milestones
The new destoning plant began beneficial operation in December 2025, improving coal quality to the lower end of the 12–14% guidance range, while gas production volumes were revised down due to PSA and Central Térmica de Temane delays and chemical revenues remain pressured despite regional sales improvements.