The “utility-like” nature of subscription services offered by companies in the cable and satellite TV sector will help them prove resilient in a weakening economy, making them a relatively safe haven for investors, according to Credit Suisse.

The bank sees substantial upside potential for these companies on a multiyear basis as the economic backdrop improves, but does not view current low valuations as a catalyst for a rise in shares in the short term.

Among companies in the cable and satellite TV sector, Comcast was rated “outperform,” while Time Warner Cable got a “neutral” rating as the bank believes the latter faces greater technical risks and balance sheet constraints. The analyst was cautious on companies in the Internet sector, which was started with a “market weight” rating, reflecting a risk of further earnings downgrades in the near term.

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