Analyst initiatives $ 7 billion New York hashish market

By Nina Zdinjak

New York became the 15th state to legalize recreational cannabis on Wednesday with the signature of Governor Andrew Cuomo.

The bill allows adult New Yorkers to own up to 3 ounces of cannabis or 24 grams of cannabis concentrates and legally purchase recreational cannabis from licensed retailers.

Cannabis analyst on New York’s market potential

New York’s recreational cannabis market could reach $ 7 billion in sales in five to seven years, Cantor Fitzgerald analyst Pablo Zuanic said in a Wednesday note, using the Colorado market as a benchmark.

RELATED: Colorado Surpasses $ 1 Billion in Marijuana Sales in Just 5 Years

“For modeling purposes, we assume that NY rec will start on July 1st, 22nd and that in the first 12 months between rec and med, project sales of USD 2.1 billion will be achieved.”

A company with 15% market share could achieve EBITDA (earnings before interest, taxes, depreciation, and amortization) of $ 110 million in New York alone if sales hit $ 7 billion, Zuanic said.

Photo by Aleksandr_Kravtsov / Getty Images

MSO lobby stronger than expected

The latest version of Bill S.854, signed by Cuomo, allows the vertically integrated licensed leisure operators to sell to third-party stores, Zuanic said, adding that the original version of the bill allowed operators to sell only to three of their own businesses.

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Zuanic noticed this “last minute change” and said the multi-state operator lobby was more powerful than expected.

Zuanic singled out seven publicly traded companies with existing operations in New York Curaleaf Hldgs Inc.CURLF 0.13%, Green thumbGTBIF 1.69% and Cresco Labs (Pink:CRLBF).

Once the list of conditions that qualify patients for medical cannabis and the list of acceptable product formats is expanded, the state medical cannabis program “could see stronger growth,” he said.

“Of course the uptrend should be in the Rec market.”

This article originally appeared on Benzinga and was republished with permission.

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