Marijuana market to reach $50 billion

Not one to ever miss out on a growth opportunity, Wall Street is increasingly advising clients to invest in the booming legalized marijuana market.

Last month, JPMorgan told investors to buy fertilizer maker Scotts Miracle-Gro because of it. Now comes a 110-page opus from the research team at investment bank Cowen called "The Cannabis Compendium: Cross-Sector Views on a Budding Industry" which contains a list of the firm's favorite stock ideas from across the many industries that could stand to benefit from increased legal pot use and production.

"Cannabis prohibition has been in place for 80+ years, but the tides are clearly turning. Potential product applications range from recreational, to health and wellness, to therapeutic, to pharmaceutical," Cowen's team wrote in a note to clients.

"With more cannabis dispensaries in CO than Starbucks, assuming full legalization, we estimate there could be as many as ~17,000 legal cannabis retailers in the U.S., upon full legalization."

The analysts' study shows more than 32 million Americans admit to marijuana use with 8 million using it on a daily basis. Moreover, Cowen sees an 80 percent chance California will approve recreational cannabis use, which will triple the legal marijuana market if it happens.

As the drug becomes more accepted, the firm estimates the legal cannabis market will grow to $50 billion by 2026 versus the $6 billion today.

The noted Wall Street firm specifically recommended Kush Bottles (ticker: KSHB) and ranked it as Outperform.