Well Positioned for 2022. ISG posted record performance in 2021 and is well positioned for a continuation into 2022, in our view. The ISG NEXT model is growing revenue, clients, and higher profitability and trends continue to move in ISG's favor as companies adapt to all things digital.Russia/Ukraine. While ISG does not have operations or people in Ukraine, its clients do and depending on how the situation unfolds, it could become a headwind. We note revenue from operations in Germany accounted for 55% of overall European business. If the conflict begins to widen, it could begin to have a greater impact on ISG.Returning Capital. ISG repurchased another $3.0 million of shares during the quarter, with $16.3 million repurchased during 2021. During the quarter, shares were purchased at an average price of $7.91 per share, above the current trading level. With the shares trading below the average acquisition price in the fourth quarter, we believe management may become more aggressive in its repurchase activity. Total remaining authorization at December 31st was $23 million.Updated Guidance. We expect a continuation of trends in 2022, although there remains uncertainty regarding the situation in Eastern Europe. Due to the uncertainty, we have back weighted the year. For the first quarter, we project revenue of $70 million. Adjusted EBITDA is projected at $9.0 million, or a 12.9% margin. We project EPS of $0.09 and adjusted EPS at $0.11. For the full year, we are at revenue of $290 million, adjusted EBITDA of $42 million, EPS of $0.41, and adjusted EPS of $0.48.Maintaining Outperform and $11 PT. We are maintaining our Outperform rating and our 12-month price target for III shares of $11.00. At our price target, III shares would trade at 22.9x our adjusted 2022 EPS, 14.3x our 2022 adjusted EBITDA, and 2.1x our 2022 revenue estimate. These multiples compare to a peer group average of 20.9x 2022 consensus earnings, 13.5x 2022 consensus EBITDA, and 2.1x 2022 consensus revenue. Read More >>