UPDATE: Oppenheimer Increases RigNet PT to $26, Maintains Outperform
In a report published Tuesday, Oppenheimer increased its price target on RigNet Inc. (NASDAQ: RNET) from $21 to $26 and maintained its Outperform rating.
Oppenheimer noted, "RNET's core business remains strong and we expect it to grow revenues in the 15%-20% range and EBITDA 20%-25% over the next five years. We are increasing our price target to $26 from $21 based on 8x 2013E EBITDA. We expect RNET's service capabilities to drive strong bandwidth per site. Our price target of $26 is based on a target EV/EBITDA multiple of 8x, which compares similarly against other rapidly growing cloud services companies in the 7x-12x range. Additionally, RNET has higher barriers to entry than many of these companies. Its low amounts of stock trading keep its valuation dampened."
RigNet closed at $18.37 on Monday.
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