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JPMorgan: this underperforming stock is the ‘top pick’ for 2022


Days ahead of the new year, a crucial question for investors is what stocks could do well next year, and JPMorgan can’t think of a better equity investment for 2022 than the Walt Disney Co (NYSE: DIS).

Alexia Quadrani sees upside to $220

On Wednesday, analyst Alexia Quadrani reiterated Disney as JPMorgan’s “top pick” for 2022. She has an “overweight” rating on the stock with a price target of $220 that represents an over 40% upside from here.

Her bullish call is based on the underlying momentum in subscriber growth at Disney+. She also expects the parks segment to do well next year now that the COVID concerns seem to be alleviating, especially after Pfizer’s big news this morning.

On top of that, the stock is down more than 20% from its year-to-date high of $202 in March, which Quadrani sees as a sweet spot for entry.

Jon Najarian agrees with the bullish call

On CNBC’s “Halftime Report”, Jon Najarian agreed with the bullish call and reiterated that Disney was an “underappreciated stock” he was comfortable holding.

The parks haven’t fully reopened yet. People are not fully going back to theatres; the box office numbers are still down. Yes, Disney only gets a percentage from the box office versus 100% of the streaming revenue. But the streaming revenue is not nearly the same. They need theatres reopened. They need parks reopened. And that’s the underappreciation.

During the same interview, Boston Private’s Shannon Saccocia also agreed Disney was a great long-term investment but said from an “institutional standpoint”, it was hard to add this stock to the portfolio at this point in time.  

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