Beacon Securities analyst Russell Stanley says that even with the stalling of rec marijuana legalization in New York state, cannabis company iAnthus Capital Holdings (iAnthus Capital Holdings Stock Quote, Chart CSE:IAN) is still poised for growth in New York’s medical market.

In an update to clients Tuesday, Stanley reiterated his “Buy” rating and C$16.00 target price for IAN, representing a projected return of 190 per cent at the time of publication.

Following on a site visit to iAnthus’ dispensary in Brooklyn, Stanley came away impressed by the store and particularly its location.

“This 2,000 SFT location opened in late December 2018, making it the first to open in Brooklyn, New York’s largest borough with a population of 2.6 million people. It is just steps from the Barclay’s Center, home to the NBA’s Brooklyn Nets, the NHL’s New York Islanders, as well as upcoming concerts featuring Ariana Grande and Shawn Mendes. This site also hosts the Atlantic Avenue-Barclays Center subway station, which is shared by four subway lines. We believe this bodes very well for foot traffic in the area, particularly once adult- use is legalized,” says Stanley.

On legalization, earlier this year a proposal to legalize adult-use failed to make it into the state budget, leaving lawmakers with the path of introducing a new version of the bill as a stand-alone legislation. Stanley says the likelihood of the bill’s passing during the current legislative session is questionable and could push back any starting date for a rec market in the state.

“While Governor Cuomo has indicated he supports the bill, he has managed expectations, saying that ‘arm twisting doesn’t work.’ We continue to view adult-use legalization as an inevitability, although the timing and the details remain uncertain. Most importantly, even as a stand-alone medical market, NY still has a lot of growth potential,” says Stanley.

The analyst is maintaining his forecasts for IAN, calling for fiscal 2019 revenue and Adjusted EBITDA of $188 million and $25 million, respectively, and fiscal 2020 revenue and Adjusted EBITDA of $341 million and $121 million, respectively. (All figures in US dollars unless noted otherwise.)