Deutsche Bank Retains Buy, PT on RigNet Ups Estimates
Deutsche Bank reiterates its Buy rating and target price of $20 on RigNet Inc. (NASDAQ: RNET) and has upped estimates for both revenue and EPS on day rates that produced results that beat expectations.
According to Deutsche Bank, “RNET generated revenue ahead of our expectations ($28.9M vs. $27.1M est), representing YoY growth of 19.3%. The upside vs. our estimate was driven by strong day rates as the total number of served offshore rigs was lower than expected (547 vs. 561 est). Day rates benefited from increased demand for bandwidth and value added services on existing rigs and a growing mix of deep water rigs, which generate 2x the day rates of shallow water rigs. In addition, a new global agreement with a major oil service company highlights RNET's success as growing revenue with existing customers.”
RNET closed Thursday trading at $16.46 per share.
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