NEW YORK (TheStreet) -- Shares of Under Armour (UA) - Get Report were up in early-afternoon trading on Tuesday after Citigroup contended that investors' concerns about the company's entry to Kohl's (KSS) wholesale distribution are overblown. 

Wall Street has been worried that the sportswear retailer's expansion to department-store operator Kohl's distribution is inconsistent with its premium branding. 

"We believe it has always been management's intention to expand the brand outside of the premium channel, not unlike what Nike (NKE) has achieved with distribution ranging from outlet to mid-tier & premium channels, though it will require an expanded assortment and increased emphasis on price point planning than Under Armour has historically offered," Citigroup wrote in a note cited by Barron's.

Kohl's will largely represent more basic, volume-driven products, while premium-priced products won't be offered at mid-tier, the firm added. 

The expansion will target a new group of consumers while focusing on long-term growth areas of women's and youth items, Citigroup said, according to Barron's.

(Under Armour is held in the Growth Seeker portfolio. See all of the holdings with a free trial)

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.

Under Armour's strengths such as its robust revenue growth, good cash flow from operations and expanding profit margins are countered by weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and premium valuation.

You can view the full analysis from the report here: UA

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

Image placeholder title