Shares of Innovative Industrial Properties Inc (IIPR) are soaring 5% in pre-market trading on Wednesday, following positive analyst coverage from two major firms. The real estate investment trust, which focuses on the regulated cannabis industry, is seeing increased investor interest amid updated price targets and ratings.

Piper Sandler has shown confidence in IIPR by raising its price target to $44 from $43. While the increase is modest, it signals a continued positive outlook for the company. Simultaneously, Alliance Global Partners maintained its Hold rating on IIPR with a price target of $50, suggesting potential upside from current levels.

These analyst actions appear to be driving the pre-market rally in IIPR stock. Investors are likely interpreting the updated views as indicative of the company's strong fundamentals and growth prospects in the specialized real estate sector catering to the cannabis industry. As the market opens, it remains to be seen if this momentum will continue throughout the trading session.