Stifel analysts have named their top stock UK picks for 2026. In the tech category, Seeing Machines was named as one of its 3 top picks alongside Kainos and Concurrent Technologies.
The companies in the tech category were jointly chosen by tech analysts Peter McNally and Freddie Hindley.
Seeing Machines: Target Price 10.5p
The note explained the reasons for Seeing Machines inclusion as follows:
“As OEMs accelerate integration ahead of GSR, we expect automotive production volumes to ramp from 488k per quarter in June 2025 to c.1.6m per quarter by June 2026. This is supported by the company’s disclosure that its OEM customers are scheduled to register c.12.5m vehicles in Europe, all requiring compliant driver monitoring solutions. The company has indicated the potential to generate up to $10m of cash per quarter in H2 CY26 as royalty revenues scale, although this is not fully reflected in our forecasts. We expect FY26 revenue growth of c.30%, with gross margins of c.66%, further benefitted by a return to growth in the aftermarket division as Gen 3 volumes improve. The key risk remains refinancing the Magna loan due in October 2026, however we see a variety of funding options available, supported by improving cash generation and recent refinancing activity by peers such as Smart Eye.”
Kainos: Target Price 1225p
Of Kainos they wrote: “Following strong results in late August, we believe the company is at the start of another upgrade cycle that could extend through the year and beyond. All divisions have now returned to growth, with potential upside from software sales in the Workday Products division, supported by the recent launch of the Pay Transparency Analyzer.”
Concurrent Technologies: Target Price 250p
Regarding Concurrent Technologies they explained: “We view Concurrent Technologies as a high-quality defence-exposed technology name, supplying ruggedised computing boards and integrated systems into long-duration military programmes, with strong defence budgets supportive. Its first-to-market R&D model has already secured c.£290m of lifetime design-ins, yet only a modest proportion of this value has so far flowed through to reported revenues. FY26 is therefore a pivotal year, as a large pipeline of prior design wins is expected to begin moving into production.”
The writer holds stock in Seeing Machines.