(MSNBC) – Dick’s Sporting Goods shares sank more than 4.5 percent Thursday after J.P. Morgan said the retailer’s future gains may be limited because the company faces tougher comparisons and rising inventories.

Analyst Christopher Horvers downgraded the retailer’s stock to neutral from overweight and trimmed his price target to $41 a share from $46. Horvers’ new price target on Dick’s implies a 10 percent upside from Wednesday’s close of $37.26.

“Looking forward, gross margin-driven upside appears less probable given 3Q’s performance, changing comparisons, and rising inventory levels,” Horvers said in a note Thursday. “The latter appears to be a theme across retail (which can be risky in the seasonal apparel world).”

Horvers’ note comes after the company reported earlier this week better-than-expected earnings for the third quarter and revenue in line with estimates.

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