Compass Point upgrades Innovative Industrial, sees opportunity after selloff

As previously reported, Compass Point analyst Merrill Ross upgraded Innovative Industrial Properties (IIPR) to Buy from Neutral with an unchanged price target of $125. Though it will take time, the firm thinks that most of the properties that are under development or redevelopment or have been repossessed from tenants will be re-leased to be used in cannabis cultivation, production, or sales, notes the analyst. While it is “unlikely to return to the growth trajectory that supported five years of explosive growth since its 2016 IPO,” the recent selloff in Innovative Industrial Properties has created a buying opportunity, the analyst tells investors.