Yesterday, Peregrine Pharmaceuticals (NASDAQ:PPHM) hosted a conference call to discuss its financial first quarter results for 2017, with the three-month quarter having ended July 31, 2016, as well as provide a clinical progress update for its pipeline.

Subsequently, FBR top analyst Thomas Yip reiterates an Outperform rating on shares of PPHM with a $1.00 price target, which represents a 155% increase from where the stock is currently trading.

A negative for the biotech firm, PPHM revealed that a hopefully one-time only backlog from a third-party testing laboratory resulted in delayed revenue recognition. Revenue of $5.6 million for the quarter fell vastly below Yip’s projected $11.2 million, but management indicates plans for shortfall recovery by next quarter, with a $20 million forecast outclassing Yip’s prior estimate of $11.4 million.

Peregrine maintained previous guidance for the fiscal year of 2017 of $50 million to $55 million for its contract manufacturing subsidiary Avid Bioservices. Yip asserts, “Therefore, we do not believe this abnormality will affect Avid’s long-term growth prospects.”

“On the clinical front, we look forward to learning more about bavituximab responders from a biomarker analysis that is part of the Phase III SUNRISE trial, to be presented at a late-breaking oral presentation at the European Society of Medical Oncology (ESMO) Congress on October 7–11, 2016. We continue to think PPHM shares are currently undervalued given Avid’s growth potential and bavituximab’s potential as an immuno-oncology treatment combination,” Yip added.

According to TipRanks, top five-star analyst Thomas Yip has achieved a high ranking of #57 out of 4,147 analysts. Yip upholds a 36% success rate while yielding 56.4% in his annual returns. When recommending PPHM, Yip earns 34.6% in average profits on the stock.