Lululemon seen as undervalued turnaround with potential 104% upside amid growth challenges.

Lululemon is currently trading below its estimated fair value despite being a premium brand with strong international growth and brand loyalty. Challenges such as CEO transition, US sales stagnation, tariffs, and internal tensions have pressured the stock. However, margin normalization and resumed growth in North America could drive significant returns over the next two to three years, with a base fair value estimate of $125 and a bullish target of $265 per share, implying a potential 104% upside. Investors view Lululemon as a turnaround play balancing growth concerns with its durable brand strength.