Strong 2Q21 Results. Revenue of $70.6 million rose 23.0% y-o-y and exceeded consensus of $65.5 million and our estimate of $65 million. ISG reported net income of $4.1 million, or $0.08 per share, up from $612,000, and $0.01, respectively, last year. Adjusted EPS was $0.12 and adjusted EBITDA totaled $9.7 million. We had forecast EPS of $0.04, adjusted EPS of $0.09, and adjusted EBITDA of $8.0 million.All Segments Contributing. ISG saw solid contribution from each of its geographic segments as clients doubled down on their digital investments. Reported revenue in the Americas rose 28%, Europe was up 13% and 4% on a constant currency basis, while Asia Pacific revenues rose 36% on a reported basis and 18% on a constant currency basis.Returning Capital. ISG's Board approved a $25 million increase in the share repurchase program, or about 8% of the current market cap. In 2Q21, ISG repurchased $8.3 million of its stock. In addition, the Company paid $1.5 million in dividends. ISG ended the quarter with $43.8 million of cash and debt of $76.6 million.Updated Guidance. We expect a continuation of trends in the second half of 2021, with our major worry renewed COVID related lockdowns. Third quarter results will be impacted by the annual summer vacation schedule in Europe, but we still expect revenue to grow 8.7% to $67 million, up from a previous $65 million estimate. Adjusted EBITDA is projected at $8.3 million, EPS at $0.06, and adjusted EPS at $0.10. For the full year, we are now at revenue of $274.2 million, adjusted EBITDA of $36.4 million, EPS of $0.27, and adjusted EPS of $0.43.Raising Price Target. We maintaining our Outperform rating and raising our 12-month price target for III shares to $9.00 from $7.00 based on the Company's strong operating performance and favorable operating outlook. At our new price target, III shares would trade at 20.9x our adjusted 2021 EPS, 13.6x our 2021 adjusted EBITDA, and 1.8x our 2021 revenue estimate. These multiples compare to a peer group average of 23.3x 2021 consensus earnings, 14.3x 2021 consensus EBITDA, and 2.4x 2021 consensus revenue. Read More >>