Morgan Stanley Downgrades Sasol to Equal Weight vs Overweight

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Morgan Stanley Downgrades Sasol to Equal Weight vs Overweight

11:06 CAT | 06 Apr 2016

Sasol Limited received a stock rating downgrade from Morgan Stanley on Apr-05-16. In a note to investors, the firm issued an Equal-Weight rating. The analysts previously had an Overweight rating on the stock.

Analysts have a consensus target price of $33.00 in the 12-month period. The price objective is 21.01% higher than the recent closing price of $27.27. The 52-week price range is $ 21.07 – 40.75 and the company has a market capitalization of $ 18.10B. Analysts covering the shares maintain a consensus Hold rating, according to Zacks Investment Research. zero analyst has rated the stock with a sell rating, 1 has assigned a hold rating, zero says it’s a buy, and zero have assigned a strong buy rating to the company.

Sasol Limited on February 1, 2016 reported that the company has obtained approval from the Mozambique Council of Ministers for its field development plan (FDP) that will see further hydrocarbon resources developed to support Southern Africa growth.

To be developed in phases, the first phase of the Production Sharing Agreement (PSA) licence area development proposes an integrated oil, LPG and gas project adjacent to Sasol’s existing Petroleum Production Agreement (PPA) area. The PPA area is where natural gas from the Pande and Temane fields is currently produced and processed in a central processing facility before being transported via an 865-kilometre pipeline to gas markets in Mozambique and South Africa.

“The Mozambican gas industry is playing an increasingly important role in the regional energy landscape, and this project represents a major milestone in further developing natural resources, which will significantly benefit Southern Africa” said David Constable, President and Chief Executive Officer, Sasol Limited.

Sasol Limited operates as an integrated energy and petrochemicals company. The company operates six coal mines in South Africa; develops and manages upstream interests in oil and gas exploration and production in Mozambique, South Africa, Canada, Gabon, and Australia; and operates coal-based synthetic fuels manufacturing facility that produces synthesis gas through coal gasification and natural gas reforming. It also produces a range of products, including industrial explosives and fertilizers; polypropylene, ethylene, and propylene; and solvents comprising acetone, methyl ethyl ketone, ethanol, n-Propanol, iso-propanol, SABUTOL, PROPYLOL, mixed C3 and C4 alcohols, mixed C5 and C6 alcohols, high purity ethanol, and ethyl acetate, as well as co-monomers, 1-hexene, 1-pentene, and 1-octene and detergent alcohol. In addition, the company manufactures base and performance chemicals; produces low-carbon electricity and other utilities, and provides site support services; engage in crude oil refinery business in South Africa; operates a network of 3,000 kilometers of natural and methane-rich gas pipelines, as well as a wax blending plant in Durban and the Ekandustria based explosives operations; manufactures ingredients used in detergents, personal care products, solvents, and waxes, as well as specialty products used as abrasives, catalysts, thickeners, ceramics, etc.; and provides organic and inorganic commodity and specialty chemicals in Europe and Asia.

Source: CWRU Observer