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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.

While we acknowledge the potential of SSL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SSL and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Unstoppable Dividend Stocks to Buy According to Analysts and Dividend Champions, Contenders and Challengers list: 15 Highest Yielding Stocks.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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