Comcast Corporation (NASDAQ: CMCSA) and Altice (NYSE: ATUS) stock receive Citi upgrades as analyst hails cable category shares’ cash-flow potential. Comcast and Altice stock were on track for their greatest day performance in more than 20 months Thursday after an analyst said he saw a “silver lining” for criticized cable stocks.

Comcast (CMCSA) shares have plummeted 40% this year, with the firm seeing its worst quarterly decrease in 20 years during the third quarter. The drops mirror broader pressure on the cable sector as broadband development has slowed after a COVID-era boom.

Citi Research analyst Michael Rollins does not dispute the sector’s difficulties, and he believes that next quarterly reports will “reinforce this new reality.” However, he believes that a “tough” quarter for the industry could “be helpful as a meaningful step forward to eventually stabilize ex-growth expectations for cable revenue” and prompt investors to think more deeply about how cable companies can improve their profitability as broadband’s share of the business mix grows.

Rollins stated that they also believe cable cash flow provides a more conservative market option during a recession scenario, which may entice value investors to revisit the sector. He raised his recommendation on Comcast and Altice to buy from neutral late Wednesday, while maintaining his neutral rating on Charter.

Given Comcast’s financial flexibility, he sees “opportunity to continue positive cash-flow generation, monetize non-core investments, and reinvest to advance strategic aspirations.” He believes Altice has “internal chances to boost performance with further fiber investments.” He goes on to say that Altice “may be ready to be a private firm.”

Mike Cavanagh has been named President of Comcast Corporation (NASDAQ: CMCSA). With this appointment, Mike will work closely with Chairman and CEO Brian L. Roberts to oversee the company’s businesses and teams. Mike will be the company’s third President in its 59-year history. He will continue to serve as Chief Financial Officer.

Roberts added, “Today’s promotion comes as no surprise; Mike is respected and trusted by those who know and work with him. Mike has brought tremendous operational and financial knowledge to Comcast and is an essential element of our unique organization. He’s an excellent partner, and they’re committed to continue to generate new and exciting chances for growth.”