JP Morgan favors Auction Technology and YouGov, cautious on Auto Trader and Trainline in UK internet sector.

JP Morgan has taken a selective approach to the UK small and mid-cap internet sector, favoring Auction Technology Group and YouGov with overweight ratings, expecting them to outperform. Conversely, it rates Auto Trader and Trainline as underweight due to sector volatility, AI disruption concerns, and company-specific risks like operational challenges and leadership changes. The bank highlights a volatile market with divergent stock performances and notes near-term catalysts for its preferred stocks.