NewLake Capital Partners: Cannabis Growth Can No Longer Stand

Summary

• NewLake Capital Partners stock has been downgraded to Hold due to emerging risks and a challenging cannabis industry outlook.
• The cannabis industry's growth has stalled, with many operators facing high debt and potential bankruptcies, impacting NLCP's tenants.
• NLCP's top tenants show mixed financial health, raising concerns about their ability to meet debt obligations and sustain lease payments.
• The potential for dividend cuts and asset devaluation suggests NLCP is fairly valued at best, with significant uncertainty ahead.