NEW YORK (TheStreet) -- RigNet (RNET) - Get Report stock is down 2.08% to $29.23 in morning trading Friday after Jefferies reduced its price target to $40 from $48, while maintaining its "buy" rating. 

RigNet is a network infrastructure provider serving the remote communications needs of the oil and gas industry.

"Management emphasizes that while RigNet is growing revenue from offshore rigs through rising average revenue per unit (ARPU) despite some rig churn, U.S. Land and TSI services will bear the brunt of the energy downturn," Jefferies analysts said, adding that RigNet reported disappointing fourth quarter revenue and EBITDA results for 2014, missing analyst expectations. 

RigNet posted fourth quarter revenue of $86.65 million versus analyst expectations of $89.19 million, and EBITDA of $18.54 million versus analyst expectations of $20.22 million.

For the 2014 fiscal year, RigNet reported $330.2 million in revenue and $73.7 million in EBITDA, versus analyst expectations of $332.7 million and $75.4 million, respectively. 

Jefferies changed revenue and EBITDA estimates for 2015 to $330.4 million and $78 million, from $362.8 million and $91.2 million, respectively. 

Key risks to the RigNet stock include competition, customer concentration, and volatility due to volatility in energy markets,  the firm noted. 

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