Beyond Meat

Some investors on Friday are finding Beyond Meat (BYND)  shares not to their taste after an analyst report predicted a steep decline in the plant-based-meat company's stock price.

Beyond Meat fell 3.98% to $154.56 after D.A. Davidson initiated coverage of the El Segundo, Calif., company with an underweight rating, according to published reports.

Davidson analyst Brian Holland set a price target of $130, representing a nearly 20% drop from the closing price on Thursday near $161.

The provider of plant-based burgers has won praise for their relatively realistic flavor. But while the analyst report praises Beyond Meat for achieving a "breakthrough," the investment bank also questions whether the total size of the plant-based-meat market is as large as some investors might hope.

Davidson contends that plant-based meat alternatives are likely to grab a smaller share of the market than companies that offer lactose-free alternatives like soy and almond milk have grabbed in the dairy market.

That's because the number of non-meat eaters is half that of consumers with lactose-intolerance issues, Barron's notes.

The report argues that the market for plant-based meat will top out around 10% at most, compared with the 13% market share plant-based milk now enjoys.

Beyond Meat began trading at the end of May. In late July it traded as high as almost $240 a share.