KeyBanc downgraded Domino’s Pizza, Inc. DPZ 4.78% from Overweight to Sector Weight on Friday. In the accompanying report, analyst Chris O’Cull explains that the company’s rising share price now fully reflects the positive aspects of KeyBanc’s outlook.

Fully Valued

Domino’s stock is now up 23 percent in 2015, and many of its current valuation metrics, including its P/E ratio of 37.7, are at or near 10-year highs. O’Cull believes that Domino’s recent execution and its above-average growth prospects warrant a premium valuation relative to other restaurant stocks. However, KeyBanc sees a risk of multiple contraction back toward long-term averages.

Strong Fundamentals

Despite the downgrade, O’Cull remains…

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