Berenberg sees European telecoms set for consolidation, calls AI, satellite fears 'overdone'

1&1 AG

01/10/2026 11:12

** Berenberg says the recent pullback in the European telecoms sector offers an attractive entry point as threats from satellite and artificial intelligence (AI) agents are "overdone"
** Also, the brokerage expects further sector consolidation and notes that nearly complete fibre networks will allow for lower operating costs alongside higher cash yields and dividends
** While personal agentic AI could pose a new threat by potentially automating plan comparisons, haggling over tariffs is "old hat," it says
** Given European prices are already "so low," Berenberg questions the likelihood of users handing over bank details to AI agents for marginal savings
** It starts French telecoms group Bouygues BOUY.PA and Digi Spain at "buy," and initiates Digi Communications DIGI.BX at "hold" 
** It names BT Group BT.L, Deutsche Telekom DTEGn.DE, Orange ORAN.PA, Vodafone VOD.L, 1&1 1U1.DE, SES SESFg.LU and Zegona ZEG.L as its top picks as they "offer substantial upside and cash returns momentum"
** Among Nordic telecoms, Berenberg upgrades Norwegian operator Telenor TEL.OL to "buy" and downgrades Swedish peer Tele2 TEL2b.ST to "sell" 
     
COMPANY
NEW RATING
OLD RATING
NEW PT
OLD PT
Tele2
sell
hold
SEK 140
SEK 146
Telenor
buy
hold
NOK 154
NOK 158
Bouygues
buy
--
€55
--
Digi Spain
buy
--
€7.60
--
Digi Communications
hold
--
RON 54.10
--

(Reporting by Marta Frackowiak)
((marta.frackowiak@thomsonreuters.com))