JPMorgan Names Auction Technology and YouGov as Top UK SMID Internet Picks

JPMorgan has highlighted Auction Technology Group and YouGov as its top investment ideas within the UK's small and mid-cap (SMID) internet sector, according to a recent analyst note. The recommendation comes as the sector faces significant challenges, offering a selective opportunity for investors.

Sector Faces Headwinds

The UK's SMID internet group has underperformed in 2026, posting a 7% decline year-to-date while the broader FTSE 250 index gained 5%, JPMorgan noted. The firm attributes this weakness to several factors, including a general risk-off market environment, investor concerns about potential disruption from artificial intelligence, and a range of company-specific issues such as operational difficulties and leadership changes.

JPMorgan's Preferred Stocks

Against this backdrop, the investment bank sees distinct opportunities in two companies it believes are poised for a re-rating.

Auction Technology Group (ATG)

JPMorgan expressed a positive outlook for Auction Technology Group, citing improved execution under its new CEO ahead of a trading update scheduled for July 23. Analysts expect the company to reiterate its fiscal 2026 guidance, supported by cost-saving synergies and a better sales mix driving higher-margin commission growth.

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Key points from the analysis include:

• JPMorgan forecasts fiscal 2026 revenue of $249 million and adjusted EBITDA of $86 million.
• Despite shares rising 54% year-to-date, the valuation remains attractive at 7.5 times enterprise value to EBITDA for fiscal 2027.
• The firm highlighted a projected 8% free cash flow yield for fiscal 2027, strong cash generation, and ongoing deleveraging as factors that could support further upside.

YouGov

Analysts at JPMorgan see the market research firm YouGov at an "inflection point." The investment case is shifting from near-term spending pressures to a clearer strategy for value creation, driven by a strategic review of its Shopper business and a new "Value Delivery Plan."

Key points from the analysis include:

• The stock trades at a significant discount, valued at 4.4 times enterprise value to EBITDA for fiscal 2027.
• JPMorgan forecasts fiscal 2026 revenue of £395 million and an adjusted operating profit of £53 million.
• An upcoming trading update in August is expected to provide more clarity on the company's refinancing progress and the potential for shareholder returns.