Jefferies Raises Estimates & Price Target on RigNet (RNET), Ensco (ESV) & Pride (PDE) Acquisition Is Positive
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Price: $8.27 --0%
Rating Summary:
19 Buy, 16 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 3
Rating Summary:
19 Buy, 16 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 3
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Jefferies believes that the Ensco's (NYSE: ESV) acquisition of Pride (NYSE: PDE) is a positive for RigNet (NASDAQ: RNET) since it already services 100% of ESV's fleet. Jefferies feels that Ensco will migrate Prides 16 floaters and 7 jackups to the RigNet solution. Pride is currently building 3 more rigs which are expects to RigNet services also.
The firm notes that the Hercules (NASDAQ: HERO) and Seahawk acquisition is also a slightly positive for RNET as the company already services both company's and is anticipated to in the future.
Jefferies estimates that the additional rigs will bring in 10-$12 million in incremental revenue and $6.5-$8 million in incremental gross profit yearly. The firm is raising its 2011 and 2012 EPS estimates from $0.49 and $0.77 to $0.57 and $0.80. Jefferies also raised its 2011 and 2012 revenues estimates from $98.7 million and $108.9 million to $102.1 million and $112.5 million. To go inline with its new estimates, it's raising its price target from $17 to $21.
The firm is maintaining its Buy rating on shares of RNET as the company posted its Q4 results slightly ahead of the firms estimates.
For more ratings news on RigNet, Inc. click here and for the rating history of RigNet, Inc. click here.
Shares of RigNet, Inc. closed at $18.23 yesterday.
The firm notes that the Hercules (NASDAQ: HERO) and Seahawk acquisition is also a slightly positive for RNET as the company already services both company's and is anticipated to in the future.
Jefferies estimates that the additional rigs will bring in 10-$12 million in incremental revenue and $6.5-$8 million in incremental gross profit yearly. The firm is raising its 2011 and 2012 EPS estimates from $0.49 and $0.77 to $0.57 and $0.80. Jefferies also raised its 2011 and 2012 revenues estimates from $98.7 million and $108.9 million to $102.1 million and $112.5 million. To go inline with its new estimates, it's raising its price target from $17 to $21.
The firm is maintaining its Buy rating on shares of RNET as the company posted its Q4 results slightly ahead of the firms estimates.
For more ratings news on RigNet, Inc. click here and for the rating history of RigNet, Inc. click here.
Shares of RigNet, Inc. closed at $18.23 yesterday.
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