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Is Wall Street Overreacting to Under Armour's Woes?

Under Armour (UA - Get Report) has plenty of fans, but apparently not Morgan Stanley analyst Jay Sole, who is worried that the growth company may be seeing sales for its core U.S. wholesale clothing unit fall 2% in the first quarter, according to a Monday report issued by the firm.

Investors reacted by sending the stock down sharply on Monday, but Wall Street may be overreacting to Under Armour's woes and Sole's analysis.

An early headline from suggested that the analyst had actually cut his price target on the stock by half to $32 per share.

But the lower price target simply reflected the fact that Under Armour had recently split its stock, two-for-one, which took place Thursday after the close of trading.

Meanwhile, Sole said that Under Armour has the "near-term revenue drivers to meet or beat Street 1Q expectations."

Sole did say the drop in wholesale revenue in the U.S., which he credited to data provided by SportScan, could cause Under Armour to have "a future quarterly sales miss." It's really anybody's guess as to when that could happen, however.

SportScan said U.S. wholesale apparel sales...