Investing.com -- European internet stocks present compelling investment opportunities according to recent analysis from JPMorgan.
The financial giant has identified several standout performers across the sector, highlighting companies with strong growth potential, operational improvements, and attractive valuations.
JPMorgan’s research points to a mix of established players and emerging forces in the European internet landscape. Here’s a closer look at their top-ranked stocks:
1. Prosus: Operations are shaping up nicely with strong momentum in the eCommerce portfolio, which is starting to generate positive free cash flow. Tencent’s solid performance further supports JPMorgan’s positive outlook.
Analysts expect ongoing open-ended buybacks to be 7%+ NAV/share accretive annually, with management executing toward further profitability improvements. Improving market sentiment for value crystallization of key portfolio assets and high-level synergies through AI-driven innovation should support a narrowing of the Prosus and Naspers discounts to NAV.
In recent news, Prosus has been active on the acquisition front, securing 90% of Just Eat Takeaway shares in a tender offer and agreeing to acquire French auto platform La Centrale for €1.1 billion through its OLX Group.
2. Scout24: Shares have outperformed Classifieds peers over the past 12 months, reflecting strong execution on new products that drove accelerated top-line growth and earnings upgrades. JPMorgan believes the market is missing the next phase of potential margin upside through more efficient marketing spend, meaningful headcount optimization, and "low-hanging" AI benefits.
Scout24 appears well-positioned to navigate the changing AI landscape, with management addressing concerns early and investing in technology, including an AI chatbot solution already live.
Scout24 has acquired Spanish online real estate platforms Fotocasa and Habitaclia for approximately €153 million. Additionally, Bernstein SocGen Group initiated coverage on the company with an Outperform rating.
3. CTS Eventim: JPMorgan remains constructive on CTS, seeing it well-positioned due to resilient consumer demand and a strong events pipeline.
Industry dynamics and international artists touring Europe in coming years provide support, with additional tailwinds from the Olympics accelerating mobile ticketing adoption. International expansion is gaining traction, and analysts forecast a double-digit EBITDA CAGR, which combined with low capex and negative working capital cycle drives high cash generation and potential for increased dividends.
CTS Eventim announced the appointment of William Willms as its new Chief Financial Officer, effective January 1, 2026.
4. Stroer: JPMorgan derives a €48 target price based on a potential €3.5 billion valuation according to recent press articles. While predicting management’s response to private equity offers remains challenging, analysts expect M&A premium in the shares to limit downside risk.
They value the Outdoor business at approximately 7x Stroer’s 2027E adjusted EBITDA of €554 million, with potential valuation of non-Outdoor assets at €0.9 billion on conservative multiples.
Stroer reported a 2% organic sales decline in its third quarter and has lowered its full-year guidance, now expecting revenues and adjusted EBITDA to be on par with the prior year.
5. Delivery Hero: Despite ongoing debates about market share maintenance in Korea and Saudi Arabia, JPMorgan remains Overweight given the attractive valuation.
Their sum-of-the-parts analysis suggests that at current prices, Delivery Hero’s operations excluding its 80% stake in Talabat and operations in Korea are valued at almost nothing. While markets will likely remain competitive, analysts view Delivery Hero as the strongest takeout story in EU Internet over the next 12 months.
A recent update from Delivery Hero showed a strong financial performance, with the company reporting a 22% year-over-year increase in revenue for the third quarter of 2025.
6. Informa: With focus now on Live B2B Events and operational infrastructure simplification, JPMorgan sees improved earnings momentum ahead through accelerating organic revenue, progressive margin expansion, and reduced financial leverage.
The company’s recent Capital Markets Day showcased a B2B events business well-positioned for compounding growth, with emphasis on innovation, strategic partnerships, and geographic expansion supporting its ability to navigate cyclicality.
Informa received a reiterated Conviction Buy rating from Goldman Sachs, which expects the company to deliver 6%-7% annual growth.
7. ATG: JPMorgan considers ATG a key pick for 2026, citing compelling valuation, operational execution progressing through conversion and take rate development, manageable leverage with high cash generation, and potential upside from end-market recovery.
Analysts note potential takeover interest given past private equity activity in the space, particularly with a sizeable strategic shareholder now in place.
8. YouGov: Despite low visibility on strategic direction before a new CEO appointment, JPMorgan sees early signs of recovery, with growth returning to Data Products and YouGov Shopper trending ahead of expectations.
Management has acknowledged the need for increased investments in technology and data science through FY27E, leading JPMorgan to upgrade YouGov to Overweight from Neutral based on de-risked earnings expectations and operational turnaround potential.
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