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Investing.com - Noble Capital has raised its price target on Information Services (NASDAQ:III) to $6.50 from $5.00 while maintaining an Outperform rating on the stock. The company, currently trading near its 52-week high of $5.60, has demonstrated remarkable momentum with a 77% return over the past year, according to InvestingPro data.
The increase comes as III shares have exceeded Noble Capital’s previous price target, according to the firm’s analyst note.
Noble Capital cited several factors supporting the higher valuation, including recent and expected future interest rate cuts, ongoing cost optimization efforts from clients, and the increasing pace of AI adoption, which the firm believes will continue to drive ISG’s operating performance.
At the new $6.50 price target, III shares would trade at 1.4 times Noble Capital’s 2026 revenue estimate on an EV/sales basis, 10.7 times on an EV/projected 2026 adjusted EBITDA basis, and 19.1 times adjusted 2026 earnings.
These multiples compare to a peer group that trades at 1.3 times, 10 times, and 15.8 times, respectively, based on consensus 2026 estimates, according to Noble Capital.
In other recent news, Information Services Group Inc. (ISG) reported impressive financial results for the second quarter of 2025. The company’s earnings per share (EPS) exceeded expectations, coming in at $0.08 compared to the anticipated $0.03. This represents a 166.67% surprise, indicating robust performance. Additionally, ISG’s revenue reached $61.57 million, surpassing the forecasted $60 million. These results have captured investor attention, demonstrating confidence in the company’s current operations. The financial community closely monitors such earnings reports, as they are critical indicators of a company’s health. Analysts had previously projected lower earnings, making ISG’s performance noteworthy. These developments reflect the company’s strong execution and market position.
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