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Citi analyst Mark May downgraded Blue Apron Holdings Inc (APRN) - Get Blue Apron Holdings, Inc. Class A Report to "neutral" from "buy" and slashed his price target nearly in half after the company reported a "disappointing" first quarter as a public company.

May said execution issues introduce new risk for Blue Apron's guidance. They also create openings for competition, May added. It's worth noting that Amazon.com (AMZN) - Get Amazon.com, Inc. Report is making big moves into meal-kit delivery and prepared food services of late.

May said he sees the biggest risk to his downgrade as the acquisition of Blue Apron by a "large retailer looking to compete with Amazon."

May assigned Blue Apron a new price target of $5.50, down from $10. Blue Apron stock traded down 1.17% to $5.08 Friday morning. The stock has tumbled 50% since its June 30 IPO.

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