Yesterday evening, Catabasis Pharmaceuticals Inc (NASDAQ:CATB) announced that lead candidate edasalonexent missed the primary endpoint in its Phase II proof-of-concept trial in Duchenne Muscular Dystrophy, sending shares down over 70%.

While the clinical setback is a huge blow for the company and its investors, Oppenheimer analyst Hartaj Singh believes there is still hope, reiterating an Outperform rating on CATB, while slashing its price target to $11.00 (from $18.00).

Singh commented, “Management noted on the conference call that steroids have historically demonstrated a benefit on this signal in as early as 12- weeks, a reason for designing the trial with this endpoint. If edasalonexent does succeed in Part C of the trial, this lack of a quick effect might constrain future sales potential. We await more visibility.”

The analyst continued, “Until CATB presents longer term data in 2Q17—with a clear clinical benefit— we believe that investors will take a wait-and-see approach to the name. However, we are believers in the underlying scientific rationale of the drug in DMD and look forward to greater clarity in 2Q17.”

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Hartaj Singh has a yearly average return of -9% and a 44% success rate. Singh has a 9.1% average return when recommending CATB, and is ranked #3959 out of 4373 analysts.

Out of the 4 analysts polled in the past 12 months, three are bullish on Catabasis stock, while one remains sidelined. With a return potential of 599%, the stock’s consensus target price stands at $8.25.