Editor's Note: This article was originally published on Real Money at 1:30 p.m. on June 15.

With uncertainty surrounding a disappointing drug study and a restructuring plan that slashes jobs, analysts have also slashed their expectations for Infinity Pharmaceuticals (INFI) - Get Report .

Still, the stock rocketed up more than 20% Wednesday after plummeting about 75% Tuesday, to about $1.69 in Wednesday trading.

The biotechnology company announced Tuesday that a phase 2 study of its treatment for non-Hodgkin's lymphoma had positive results but fell short of hopes that it would provide a larger clinical benefit. The drug, duvelisib, had an overall response rate, or ORR, of 46%, which is below the response rates of other competitors.

In addition to the disappointing results, the company announced that it will be closing down its research team, eliminating 46 jobs and reducing its total work force by 21%.

Indolent non-Hodgkin's lymphoma "is a crowded space," said Jefferies analysts in a research note Wednesday, noting that other recent drug trials showed ORR's of 50% to 69%, thus making duvelisib "not competitive."

The analysts removed sales estimates from their valuation and slashed their price target to $1.25 from $12 based on "lowered expectations for duvelisib commercial success." They also downgraded Infinity to hold from buy.

Wells Fargo analysts lowered their rating to market perform from outperform and reduced their valuation range to between $1.25 and $1.50, down from a range of $17 to $20. In a research note, the analysts said the new range reflects the uncertainty regarding duvelisib.

"While there is some small possibility of salvaging duvelisib over the longer term, we expect shares to remain depressed in the near-to-intermediate term," the Wells Fargo analysts wrote.

Furthermore, analysts at both Wells Fargo and Jefferies predict the end of Infinity's partnership with AbbVie (ABBV) - Get Report . The two companies were working together on the combination of duvelisib and AbbVie's venetoclax, which Jefferies analysts noted has been viewed as "most exciting."

But those plans are now on hold. "We see a high likelihood to AbbVie terminating the collaboration agreement and see a difficult path forward for the drug," the Wells Fargo analysts added.

Infinity CEO Adelene Perkins said the company has plans to seek feedback from the U.S. Food and Drug Administration to determine the next steps.