Ocular Therapeutix Inc (NASDAQ:OCUL) shares fell more than 50% on Friday, after the company’s most advanced asset, a sustained-release formulation of the anti-inflammatory dexamethasone (branded as Dextenza), came through with mixed results in a Phase III study on allergic conjunctivitis. The company also reported topline results for its phase 2 glaucoma trial, which had equivocal results versus timolol.

Despite the clinical setback, BTIG analyst Hartaj Singh came out today, reiterating a Buy rating on shares of Ocular Therapeutix, with a price target of $40, which implies an upside of 457% from current levels.

Singh wrote, “The share price reaction is irrational, as we believe that by EY16 Ocular will be on the verge of Dextenza approval for post-surgical pain, a potential sNDA for Dextanza post-surgical inflammation and a potential NDA for Dextenza in allergic conjunctivitis.”

“We remain bullish, but it is concerning that the clinical development pathway for Dextenza (and now OTX-TP) has been riskier than anticipated. However, we believe that management will apply the learnings from the recent readouts going forward and position Dextenza and OTX-TP for success in 2016-2017.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Hartaj Singh has a total average return of 0.6% and a 21.4% success rate. Singh is ranked #2365 out of 3801 analysts.

All the 3 analysts polled by TipRanks rate Ocular Therapeutix Inc stock a Buy. With a return potential of 563.9%, the stock’s consensus target price stands at $47.67.