According to Wall Street analysts, Pure Storage stock price upside potential is 22%.

One highly specialized technology stock that’s been getting a lot of attention from investors lately is the aptly named stock. Pure Storage (PSTG -1.50%). In a world overflowing with data, bigger and faster storage systems are a necessity, not a hope, for many customers. Pure Storage is at the cutting edge of this category.

The company has also garnered analyst attention, often positive attention. Many are optimistic about the future, including one forecaster from a large bank who recently tagged it a buy recommendation.

Starts with a solid buy recommendation

mid-March, Citigroup Analyst Asiya Merchant began her bank’s coverage of Pure Storage. She put a buy sticker on her stock and set her target price at $65 per share. At current prices, this means the stock could rise around 23% over the next 12 months.

“Pure Storage participates in the highest-growth subsegment of external storage with a portfolio based on 100% all-flash,” Merchant wrote in his first research note on the stock.

She added that artificial intelligence (AI) and machine learning (ML) capabilities “are likely to further drive growth” for flash memory service providers. This is not only due to the increased space required to support this technology. Flash, as the name suggests, is also great for quick storage and retrieval.

Growth is planned, but…

There are some discrepancies between Merchant’s very positive view of Pure Storage and the company’s recent announcements.

This is driving double-digit percentage improvements in both revenue and operating profit. That’s certainly encouraging, but the stock is currently priced closer to an explosive growth company than the relatively modest growth story it presents to investors. If that’s the case, then the $65 price target over 12 months might be a bit outrageous.