The Walt Disney Co DIS was featured as the call of the day Wednesday on CNBC's "Fast Money Halftime Report" after JP Morgan named the stock a top pick for 2022.
What Happened: JP Morgan said it sees positive catalysts ahead for Disney, including a bounce-back in fiscal first-quarter subscriber growth and better-than-expected results at the parks.
The firm has an Overweight rating and $220 price target on Disney.
Najarian's Take: Disney's stock is "underappreciated," Market Rebellion co-founder Jon Najarian said Wednesday on CNBC.
It's underappreciated because it has underperformed the market, trading down by more than 15% year-to-date, Najarian said.
"I'm comfortable holding it because I think it is underappreciated and undervalued."
From Last Week: Why Jim Cramer Is Buying More Disney Stock Today
The parks still haven't fully reopened and people have not fully returned to theaters. Streaming revenue isn't enough to carry the stock higher, he noted.
"They need theaters reopened. They need the parks fully reopened," Najarian said.
He told CNBC that he owns Disney shares and call options. Moreover, he plans to sell upside calls against his stock position while he waits for Disney's revenue streams to fully recover.
DIS Price Action: Disney has traded as high as $203.02 and as low as $142.04 over a 52-week period.
The stock was up 1.78% at $153.50 at time of publication.
Also See: Disney's 'Encanto' Tops Box Office For Second Consecutive Week
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