Investors Should Expect More Downgrades for Innovative Industrial Properties
At first glance, Innovative Industrial Properties (IIP) (NYSE: IIPR) looks like a promising stock to buy. Near its 52-week low, it's possibly a cheap buy. With an average analyst price target of more than $126, the stock could potentially soar by more than 75% over the next year or so.
But the optimism shouldn't be nearly that high for the cannabis stock. It's likely analysts will trim their price targets in the near future.
The cannabis industry continues to struggle to compete with the black market. And although pot was always a challenging industry, given the quasi-legal environment with states permitting cannabis use while the federal ban on it remained intact, rising inflation has only put more pressure on marijuana businesses.
Source Fool.com
