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

** 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"