0921 GMT - Artificial intelligence should transform the European digital classifieds sector, rather than eliminate it, Stifel's Clement Genelot writes in a note. While European digital classifieds have been the market's most reliable performer in terms of growth for a decade, the sector has lost more than 40% of its market value since mid-2025, Genelot says. The decline is barely due to the earnings, he notes. Instead, investors have stopped believing in a gatekeeper model in an AI world, he says. That verdict is too broad, he adds, noting that debate on AI is still open. Large-language models that support AI still account for less than 0.5% of portal traffic and have so far opted for partnership over disruption, he says. However, there is a real risk of competition from new AI-native players.