XOMA Corp (NASDAQ:XOMA) shares are surging forward a sturdy 5% today after delivering its third-quarter financial results. Yet, considering the biotech firm’s pipeline is still “early in development” with “its value uncertain, and the company in need of funding,” Cowen analyst Phil Nadeau reiterates a Market Perform rating on XOMA without suggesting a price target.

For the third quarter, XOMA posted a net loss of $12.5MM at $2.08 per share. Nadeau notes, “XOMA ended Q3 with $20.6MM in cash, which it expects will be sufficient to fund operations only into Q1:17. In data released in September XOMA 358 produced signals of efficacy and XOMA plans to advance XOMA 358 to Ph. II multidose studies.”

For reference, XOMA 358 is the firm’s human allosteric modulating antibody that binds to insulin receptors and attenuates insulin action. Presently, the pipeline drug is being investigated in conditions characterized by high levels of insulin, either due to abnormal pancreatic beta cell function, or an abnormal response to glucose.

Ultimately, “XOMA does expect to earn a $10MM milestone payment over the next few months under one of its existing collaborations. However, even that payment will extend XOMA’s cash runway by only a quarter. XOMA is clearly in need of funding, and with a $33MM market cap, current investors could face significant dilution. Adjustments to our estimates largely reflect XOMA’s recent 1 for 20 reverse stock split,” Nadeau concludes.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, one-star analyst Phil Nadeau is ranked #3,426 out of 4,186 analysts. Nadeau has a 40% success rate and faces a loss of 2.1% in his yearly returns. When recommending XOMA, Nadeau loses 77.7% in average profits on the stock.

TipRanks analytics demonstrate XOMA as a Buy. Out of two analysts polled by TipRanks, one is bullish on XOMA stock and one remains sidelined. With a return potential of nearly 213%, the stock’s consensus target price is $17.00.screen-shot-11-09-16-at-07-47-pm