Morgan Stanley has officially ruined what would have been an otherwise smooth Tuesday for Shake Shack (SHAK), which announced a limited release of ChickenShack burgers this morning.
The spotlight is on Shake Shack’s shares instead of its chicken sandwiches in the wake of the report issued this morning by Morgan Stanley analysts, which downgraded the company’s rating. Analyst John Glass wrote that the stock is “overpriced,” noting an “extreme disconnect” between the market price and fair value.
In response to the report, Shake Shack shares dropped more than 9 percent on Tuesday. That nicks the immense gains the company has seen this year — shares have almost tripled since Shake Shack went public in January, according to Business Insider. The report attributed Shake Shake’s inflated shares to the illiquidity of shares and “brand-related optimism”–just the sort of thing that exciting limited release menu items like the ChickenShack are designed to stoke.