NEW YORK (TheStreet) -- Shares of RigNet (RNET) - Get Report are down 4.3% to $28.69 in afternoon trading Wednesday after Oppenheimer decreased its price target to $40 from $55 while maintaining an "outperform" rating.  

"While management has an idea of how many offshore rigs may be decommissioned in the near term, they are uncertain as to the timing and there may be additional rigs," analysts said, adding that planned expense reductions appear minimal versus the revenue uncertainty.  

The network infrastructure company, that serves the remote communications needs of the oil and gas industry, posted lower-than expected revenue of $86.7 million for its fourth quarter of 2014, versus analysts estimates of $88.4 million.  

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Although the business is under pressure given lower rig counts, Oppenheimer still believes that broadband per rig demand remains strong, and that rig counts will eventually stabilize by the end of 2015.

"Growing bandwidth demands/digitalization of new and efficient rigs helped drive average revenue per user (ARPU) by 33% year over year, which helped offset a decline in offshore rig count," Oppenheimer noted. 

Analysts estimate that RigNet gained approximately 160 bps of market share in its fourth quarter, and believe ARPU can continue to grow as older/less efficient rigs are likely to be cold stacked. 

Separately, TheStreet Ratings team rates RIGNET INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate RIGNET INC (RNET) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• RNET's very impressive revenue growth greatly exceeded the industry average of 14.4%. Since the same quarter one year prior, revenues leaped by 54.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
• RIGNET INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, RIGNET INC increased its bottom line by earning $0.93 versus $0.70 in the prior year. This year, the market expects an improvement in earnings ($1.08 versus $0.93).
• The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 149.6% when compared to the same quarter one year prior, rising from $2.35 million to $5.86 million.
• Net operating cash flow has significantly increased by 229.50% to $19.38 million when compared to the same quarter last year. In addition, RIGNET INC has also vastly surpassed the industry average cash flow growth rate of 3.92%.
• Despite currently having a low debt-to-equity ratio of 0.58, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that RNET's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.33 is high and demonstrates strong liquidity.
• You can view the full analysis from the report here: RNET Ratings Report