Compass Point Research & Trading LLC analystSteve Shawinitiated coverage of InnovativeIndustrial Properties Inc. with a rating of "buy," and aprice target of $21.

The analyst wrote in a research report: "IIPR wentpublic on December 1 in an IPO that raised $67M of gross proceeds. IIPR is thefirst REIT to focus on assets utilized to grow medical cannabis. We think thestock provides investors an entrance to the cannabis industry with the safetyof hard real estate assets. We expect the company to close on its first assetin the next few weeks. The stock is currently trading below the value of the cashon hand (~$18.60/share). Our price target, along with our projected dividend,represents 31% upside to the current stock price."