SHOOT: Sasol's currently R295.02/share. Tough to call, but I think energy stocks will be firmer than virtually everything else over the medium and long term.
Johannesburg - The uptick in the oil price bodes well for the earnings prospects of petrochemical giant Sasol, but analysts have cautioned that correlations drawn between oil and the company's share price may be disjointed in the short term.
According to an array of analysts surveyed by Fin24.com, Sasol's share price doesn't track the rand oil price as closely or efficiently over three to six months as over a longer period, for instance a year.
In another development, investment banking firm Goldman Sachs lowered its 12-month share price forecast on Sasol from R438/share to R403/share, due to lower earnings expectations on the back of the rand's stronger showing against the dollar.
Sasol last traded around the R400/share mark in October 2008, reaching a high earlier that year of R514/share on May 21. In contrast, Lerche said: "R400/share 12 months from now is a little bit heavy but feasible."
On Wednesday, the stock traded 0.87% higher at R294.27.
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clipped from www.fin24.com
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