I think it will be fine. I'd recommend using something like Kelp Max on it, my Phals go crazy growing roots when I use that! And they usually do it within a couple of weeks. Personally I'd just pot it up with a nice large bark (soak the bark well first so it will retain some water when you water it), use the Kelp Max (or other kelp extract, I'm just familiar with that one and have had great results with it) when you water for the first couple of weeks and keep it in a low stress environment. It should recover well. For some reason, I've had bad luck with the sphag and bag method, but most people find it works great, so that's a good option too!