Shares of Dow Inc.  (DOW) fell more than 4% on Monday after receiving a downgrade from BMO Capital Markets analyst John McNulty to market perform from outperform.

McNulty initiated coverage of the new Dow back in April with the outperform rating and a $64 target price. That followed an outperform rating on former parent DowDuPont and a target price of $67.

At the time, McNulty saw promise for the spinoff company, noting that "a stronger management focus on return, capital discipline and a large shareholder dividend should be better for investors than the previous company," he said in a note to clients. 

Dow, a highly diversified materials company that is an industry leader in plastics and ethylene, has told investors and analysts the new company's focus will be on cost-cutting, capital discipline and returning significant cash to shareholders, the analyst said at the time.

DowDuPont was born in 2017 with the merger of Dow Chemical and DuPont (DD - Get Report) . Plans to break up the company were announced last year.

Shares of Dow were down 4.1% at $49.07. Shares of DuPont were down 0.26% to $74.89.

Dow and DuPont are holdings in Jim Cramer's Action Alerts PLUS charitable trust.