UPDATE: Goldman Sachs Raises PT to $41 on Dow Chemical on Operational and Strategic Upside

Goldman Sachs reiterated its Buy rating on Dow Chemical

and raised the price target from $36.00 to $41.00. Goldman Sachs said, "In our opinion, despite a recent rally in the share price, investor perception on DOW remains anchored to several company-specific challenges in 2012 that are likely to abate in the coming year. Looking ahead, a combination of cost cuts, reduced downtime, and strategic expansions should easily deliver above-consensus EPS. In particular, a sizable recovery in its key ethylene-chain franchise should drive greater appreciation for DOW's shale-gas credentials and role as the global leader in ethylene production. Also, with a nearly 4% current yield, the stock offers an attractive income stream to reward investors as they await confirmation of a profit recovery." Dow Chemical closed at $33.86 on Friday.