8 Best Micro Cap Stocks to Buy According to Analysts

3. Industrial Logistics Properties Trust (NASDAQ:ILPT)

Market Cap as Of October 29: $260.63 Million

Stock Upside Potential: 157.07%

Number of Hedge Fund Holders: 18

Industrial Logistics Properties Trust (NASDAQ:ILPT) is a real estate investment trust that owns and leases high-quality distribution and logistics properties. It is one of the companies well positioned to benefit as macroeconomics improves owing to lower interest rates after a downturn in the real estate sector due to high interest rates.

In addition, management is setting the company up for future growth by focusing on tenant retention, maximizing mark-to-market rent growth opportunities, and managing operating expenses. The efforts are already paying off as Industrial Logistics Properties Trust (NASDAQ:ILPT) executed 628,000 square feet of new and renewal leases at weighted average rental rates that were 15.8% higher than prior rental rates for the same space.

Cash flows remained stable in the second quarter at 77% annualized rental revenues. While occupancy in the company’s properties dropped by 3.6% in the second quarter, they stayed at highs of 95.4%. Analysts on Wall Street remain optimistic about the REIT’s prospects as sentiments in the real estate sector improve. Consequently, they maintain a Buy rating on Industrial Logistics Properties Trust (NASDAQ:ILPT) with an average price target of $10, which implies a 157.07% upside potential.