Wayfair (W) - Get Report , the online home-furnishings specialist, was initiated sell at Berenberg, where analyst Graham Renwick said that while it has disrupted the industry the company's "first-mover advantages are being eroded as competition intensifies."

"In the home and living market, players must lead on price, choice or convenience," Renwick said in a report. The Boston company "does not differentiate on any of those factors."

Renwick set a price target of $100 on the shares, 22% below Thursday's closing price. Wayfair shares are trading Friday down 3.4% at $124.25. 

The company offers 14 million products, saying it "has something for everyone," Renwick said. But "this choice can be overwhelming and difficult to curate," the analyst said.

Further, the "majority of Wayfair's bestsellers can be found at competitors, where are they are often cheaper -- in particular at Amazon (AMZN) - Get Report ," he wrote.

"Increasing online price comparability will erode brand loyalty, with clear negative implications for Wayfair's profitability," he wrote.

Wayfair also is increasingly unprofitable, on the back of capital-spending requirements and outlays for fulfillment and to acquire customers, Renwick wrote.

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