New York (CNN Business) Marijuana is going mainstream and Wall Street has started to notice.

Recreational marijuana is now legal in Canada. And even though there is still a federal ban on pot in the United States, Washington has started to loosen some regulations on other products derived from cannabis, including hemp, following the recent passage of the Farm Bill.

Several states have also legalized recreational and medical marijuana.

That's why Vivien Azer of Cowen & Co. is extremely bullish about the prospects for cannabis companies.

Azer is the first analyst at a major stock research firm to start coverage of cannabis companies. She held a call with reporters on Tuesday to discuss her views on the sector. Azer covers Canada's Canopy Growth ( CGC ) and Tilray ( TLRY ) as well as US-based cannabis packaging maker KushCo ( KSHB ).

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