Sasol downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded Sasol to Neutral from Overweight with a price target of R$248, down from R$296. The firm says that in the absence of a deal being done with government on the future of Secunda, it is difficult to make a compelling case for the stock in anything other than the short term. The longer-term buy case seems to hinge on the assumption that government will ultimately not impose a punitive carbon tax on Sasol, and “we aren’t so sure,” the analyst tells investors in a research note.