Shares of Beyond Meat (BYND) - Get Report were falling 3.6% to $149.68 Monday after Exane BNP Paribas initiated coverage of the plant-based food producer with an underperform rating and a $70 price target.

In a note to investors, analyst Mikheil Omanadze referred to the El Segundo, California-based company's shares valuation and low barriers to entry in the alternative meat industry.

Although plant-based meats will grow rapidly, Omanadze said that he is struggling to justify Beyond Meat's valuation since barriers to entry are negligible.

He also said market heavyweights like Nestle (NSRGY) - Get Report  , Tyson Foods  (TSN) - Get Report , Kellogg (K) - Get Report  and Hormel (HRL) - Get Report are all working on competing products and have "far more firepower."

Omanadze also said branded burgers are unlikely to ultimately have a material presence in foodservice.

In July, Beyond Meat posted a second-quarter loss of 24 cents a share, its first as a public company, around three times more than analysts' forecasts, but said revenue nearly tripled from the same period last year to $67.3 million. The numbers were encouraging enough for Beyond Meat to boost its full-year guidance.

Last month, the company took a beating on Wall Street after pricing its new stock offering at a steep discount.