Stock Markets April 14, 2026 05:46 AM

JPMorgan Signals Choppiness Across UK Internet Names, Identifies Select Picks

Bank keeps overweight calls on several digital media and commerce players while flagging valuation and competitive headwinds for others

By Marcus Reed YOU
JPMorgan Signals Choppiness Across UK Internet Names, Identifies Select Picks
YOU

JPMorgan updated its ratings on a group of UK small- and mid-cap internet companies, pointing to pronounced sector volatility and near-term operational pressures. The bank kept overweight stances on a number of names, downgraded or placed others on watch, and reiterated specific financial metrics and valuations for each company it covered.

Key Points

  • JPMorgan finds the UK small- and mid-cap internet group down 15% year-to-date versus a 1% fall in the FTSE 250, signaling elevated sector volatility.
  • ATG and Informa retain overweight ratings on the back of strong quarter results and revenue progress; YouGov is on a Positive Catalyst Watch tied to a strategic review of its Shopper unit.
  • Auto Trader and Trainline were downgraded or rated underweight due to valuation concerns and increased competition, respectively, with JPMorgan providing specific fiscal 2027 forecasts and multiples for each.

JPMorgan has refreshed its coverage of several UK-listed small and mid-cap internet businesses, warning that the segment has seen heightened volatility and operational stress even as the investment bank retained positive stances on a number of names.

The research note highlights that the peer group has underperformed broadly so far this year, with the basket of internet stocks down 15% year-to-date versus a 1% decline for the FTSE 250.


Auction Technology Group (ATG)

JPMorgan kept an overweight rating on Auction Technology Group PLC, pointing to a robust first quarter in which the company delivered 7.2% organic revenue growth. The bank said guidance was reaffirmed across all reported metrics. It also flagged that FitzWalter has increased its stake to 26% and that potential takeover interest is being contemplated. On valuation, ATG is seen trading at 6.2x EV/EBITDA for fiscal 2027, a level JPMorgan notes is 31% below the stock’s two-year average.


YouGov (YOU)

YouGov plc was placed on Positive Catalyst Watch following a board-led strategic review of its Shopper division. JPMorgan’s workplaces a valuation for the Shopper unit in a range of £150 million to £180 million and expects that a refinancing would be followed by a share buyback of at least £10 million. YouGov’s shares have fallen 32% year-to-date and the stock is trading at 3.7x EV/EBITDA for fiscal 2027 according to JPMorgan’s metrics.


Auto Trader (AUTOA)

The bank downgraded Auto Trader Group Plc to underweight, citing what it described as an elevated valuation relative to anticipated earnings growth. JPMorgan’s own fiscal 2027 forecasts for group operating profit and earnings per share sit 4% and 3% below consensus estimates, respectively. Auto Trader is trading at 8.5x EV/EBITDA for fiscal 2027 and JPMorgan models 5% EBITDA growth for the company versus a peer group average of 10.4x EV/EBITDA and 8% growth.


Trainline (TRNT)

Trainline PLC was also assigned an underweight rating ahead of its May 6 fiscal 2026 results announcement. JPMorgan left its fiscal 2027 adjusted EBITDA estimate unchanged at £177 million but trimmed UK Consumer revenue forecasts, citing increased competitive pressures in that market. The stock is quoted at 7.1x EV/EBITDA for fiscal 2027 and carries an 8% free cash flow yield on JPMorgan’s calculations.


Informa (INF) and Future

For Informa PLC, JPMorgan maintained an overweight rating and highlighted that more than £2 billion of 2026 revenues have already been paid, representing 45% of the target. Informa trades at 7.1x EV/EBITDA for fiscal 2027. Future retained its overweight rating despite ongoing operational challenges in programmatic advertising and eCommerce; the stock is shown at 2.5x EV/EBITDA for fiscal 2027 under JPMorgan’s framework.


THG (THG)

THG Holdings PLC was given a neutral rating with a December 2027 price target of 55 pence. JPMorgan notes the stock is trading at 4.7x EV/EBITDA for fiscal 2027 following the demerger of its Ingenuity business.


Across the coverage, JPMorgan’s note underscores a mixed set of company-specific dynamics - from potential strategic activity and buybacks to valuation mismatches and market competition - that together are contributing to uneven performance in the UK internet space.

Risks

  • Ongoing competitive pressure in UK consumer-facing digital services could compress revenue and margin prospects for companies such as Trainline and firms with programmatic advertising exposure - impacting the consumer internet and travel sectors.
  • Valuation risk where share prices reflect premiums versus projected earnings growth, as highlighted for Auto Trader, may lead to downside if operating performance misses JPMorgan’s or consensus forecasts - affecting investor returns in the online classifieds and auto sectors.
  • Strategic execution and corporate actions (for example, refinancing, share buybacks, or potential takeovers) remain uncertain; outcomes of such actions could materially affect capital allocation and share valuations in the media and eCommerce segments.

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