Jefferies analyst Andy Barish downgraded Shake Shack (SHAK) to Underperform with an unchanged price target of $36. The stock closed yesterday up 7c to $46.20.

The analyst still believes in the long-term growth opportunity for Shake Shack, but thinks much of that is already discounted in the current valuation. He sees the company’s traffic remaining negative in 2018 due to cannibalization, high volumes and a small comp base.

Barish calls Shake Shack overvalued following the recent rally in the shares.