JP Morgan backs Auction Technology and YouGov, turns cautious on Auto Trader and Trainline

JP Morgan has set out a selective stance on the UK small and mid-cap internet sector, naming Auction Technology Group PLC (LSE:ATG, FRA:684) and YouGov PLC (AIM:YOU) as its preferred names while flagging caution on Auto Trader Group PLC (LSE:AUTO) and Trainline PLC (LSE:TRN, FRA:2T9A).

The bank rates both ATG, which operates online marketplaces for curated auctions, and YouGov, the market research group, overweight, meaning it expects them to 'outperform' the wider sector.

YouGov also carries a positive catalyst watch at JP Morgan, a designation signalling the bank sees a near-term event capable of driving the shares higher.

Auto Trader, the vehicle listings platform, and Trainline, the rail and coach ticketing app, are both rated underweight.

JP Morgan, in a note by analyst Lara Simpson, said the sector has had a choppy start to 2026, falling 7% against a 5% gain for the FTSE 250.

The bank attributed the underperformance to a risk-off backdrop and mounting investor concern over how far and how fast artificial intelligence could disrupt established online business models.

Layered on top of that, JP Morgan said, is a run of company-specific execution risk across the coverage universe.

That includes operational headwinds, debate over balance sheets and capital allocation, and a series of leadership changes at multiple companies.

The bank characterised the resulting backdrop as volatile and heavily dispersion-driven, with individual stock outcomes diverging sharply rather th...