Information Services Group Inc.

I, Sarkis Sherbetchyan , certify that this report reflects my personal beliefs about this company and that no portion of my compensation was, is or will be directly or indirectly related to the specific recommendations or views discussed in this report.


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Disclosure Chart

Initiated Coverage on 03/20/2015 with a Buy Rating and Price Target of $6.00

Ratings Distribution as of August 21, 2017
Rating Number of Companies Percent of Total
Buy 145 74.4%
Neutral 49 25.1%
Sell 1 0.5%
Total 195 100%
% with Investment Banking Relationships
Rating Number of Companies Percent of Total
Buy 23 88.5%
Neutral 3 11.5%
Sell 0 0.0%
Total 26 100%

Explanation of B. Riley & Co. LLC's Rating System

  • Buy: We generally expect “Buy” rated stocks to have an above-average risk-adjusted total return over the next 12 months. We recommend that investors buy the securities at the current valuation.
  • Neutral: We generally believe “Neutral” rated stocks will have an average risk-adjusted total return over the next 12 months.
  • Sell: We generally expect “Sell” rated stocks to have a below-average risk-adjusted total return over the next 12 months. We recommend that investors reduce their positions until the valuation or fundamentals become more compelling.

Risks and Considerations

  • Acquisition/Integration - The Company recently completed acquisition(s). If the Company fails to successfully integrate the acquisition, the deal may lead to disappointing returns.
  • Financial Results - The Company's business is affected by the general IT spending environment especially as customers delay purchases of IT equipment.
  • Industry Change - The industry is subject to rapid technological change.
  • General Industry - The Company could miss our estimates and/or their financial guidance.

Additional Risks and Considerations

    • Acquisitions – The company actively evaluates potential acquisitions as part of its growth strategy. Acquisitions pursued by the company could be dilutive to financial results and result in a difficult, dilutive or expensive integration.
    • Competition – The company operates in a rapidly evolving and highly competitive business information services and advisory sector, with some competitors having significantly more resources.
    • Economy – A decline in economic growth or economic disruptions may have a negative impact on operating results.
    • Growth objectives – The company’s failure to develop and offer new services and products would have a negative impact on its future growth and prospects. There are many factors that may impact the company's ability to achieve its stated growth objectives.
    • Intellectual property rights – The company relies on copyright and trademark laws, as well as nondisclosure and confidentiality arrangements, to protect its proprietary methodologies and tools. There can be no assurance that the protection of the company’s IP will be enough to deter misappropriation or misuse.
    • International exposure – The company generates a significant amount of international revenue, which is generally collected in local currency, and intends to continue to expand its global footprint to meet client needs. As a result, its international operations expose the company to a variety of risks, including foreign currency translation risks.
    • Loss of key personnel – The current management team will be instrumental in executing the company's growth strategy. The resignation of a key member of management would have a negative impact on the company.
    • Refer to the company's SEC filings, particularly its 10-K filing, for a discussion of additional risks.