Citi analyst Wendy Nicholson initiated coverage of Beyond Meat (BYND) with a Sell rating and $123 price target.

The stock closed Thursday down $3.76 to $141.22.

Beyond Meat is a leader in the plant-based meat market, benefitting from a "well-known brand" in both the refrigerated meat section of the grocery store and more recently, in foodservice locations, Nicholson tells investors in a research note. However, the company faces both near-term pressure as a result of its exposure to the foodservice segment and longer-term pressure as the category becomes more competitive, says the analyst.

As a result, Nicholson sees 15% downside in shares.