Innovative Industrial Properties Inc (IIPR) saw a notable price increase of 9.65%, crossing above its 5-day SMA. This movement occurs in the context of a broader market decline, with the Nasdaq-100 down 1.82% and the S&P 500 down 1.11%.
The stock's rise is attributed to sector rotation, as investors are increasingly focusing on cannabis-related properties amid the recent surge in cannabis stocks following reports of potential federal easing on marijuana regulations by President Trump. This shift in investor sentiment highlights the growing interest in the cannabis sector, despite the overall market's downturn.
The implications of this movement suggest that Innovative Industrial Properties may benefit from the renewed interest in cannabis investments, positioning itself favorably as the market navigates through regulatory changes and evolving investor preferences.
Wall Street analysts forecast IIPR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IIPR is 61.33 USD with a low forecast of 44.00 USD and a high forecast of 90.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
Wall Street analysts forecast IIPR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IIPR is 61.33 USD with a low forecast of 44.00 USD and a high forecast of 90.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
2 Hold
1 Sell
Hold
Current: 47.860
Low
44.00
Averages
61.33
High
90.00
Current: 47.860
Low
44.00
Averages
61.33
High
90.00
Piper Sandler
Alexander Goldfarb
Underweight
maintain
$43 -> $44
2025-11-05
Reason
Piper Sandler
Alexander Goldfarb
Price Target
$43 -> $44
AI Analysis
2025-11-05
maintain
Underweight
Reason
Piper Sandler analyst Alexander Goldfarb raised the firm's price target on Innovative Industrial Properties to $44 from $43 and keeps an Underweight rating on the shares. The firm continues to harbor downside risk concerns over the company's investment in privately-held life science upscale developer IQHQ, given both sectors still are working through overcapacity issues.
Wolfe Research
Andrew Rosivach
Outperform
to
Peer Perform
downgrade
2025-07-02
Reason
Wolfe Research
Andrew Rosivach
Price Target
2025-07-02
downgrade
Outperform
to
Peer Perform
Reason
Wolfe Research analyst Andrew Rosivach downgraded Innovative Industrial Properties to Peer Perform from Outperform and removed the firm's price target on the shares. Wolfe says that recent share price outperformance places the stock near the midpoint of its sensitivity analysis, which the firm's prior price target was based upon, implying fair value given ongoing cannabis industry pressures. Overall, Wolfe finds the stock near its fair value given associated risks.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for IIPR
Unlock Now
Piper Sandler
Alexander Goldfarb
Sell
Maintains
$55 → $45
2025-04-15
Reason
Piper Sandler
Alexander Goldfarb
Price Target
$55 → $45
2025-04-15
Maintains
Sell
Reason
Piper Sandler analyst Alexander Goldfarb lowered the firm's price target on Innovative Industrial Properties to $45 from $55 and keeps an Underweight rating on the shares. Ahead of Q1 2025 earnings, the firm is adjusting estimates for recent company announcements and assumption revisions. Piper says its Innovative Industrial Properties update reflects its best estimation for replacing the rents impacted by recent tenant credit issues.
Piper Sandler
Alexander Goldfarb
Sell
Maintains
$60 → $55
2025-03-31
Reason
Piper Sandler
Alexander Goldfarb
Price Target
$60 → $55
2025-03-31
Maintains
Sell
Reason
Piper Sandler analyst Alexander Goldfarb lowered the firm's price target on Innovative Industrial Properties to $55 from $60 and keeps an Underweight rating on the shares. The firm notes the company announced more tenant defaults post-close on Friday, which represents its effort to clear the deck of delinquencies as management's patience seems to now be gone. Overcapacity, illicit market, and cross state border sales remain issues, now exacerbated by the pending outsized industry debt maturities in 2026, which stems from 2021's ultra-low rates, Piper adds.
About IIPR
Innovative Industrial Properties, Inc. is an internally managed real estate investment trust (REIT). The Company is focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated cannabis facilities. It acquires its properties through sale-leaseback transactions and third-party purchases. The Company owns approximately 109 properties comprising an aggregate of 9.0 million rentable square feet (including 666,000 rentable square feet under development/redevelopment) in 19 states, including Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Jersey, New York, North Dakota, Ohio, Pennsylvania, Texas, Virginia, and Washington. Its subsidiary is IIP Operating Partnership, LP (Operating Partnership).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
