Halftime Report

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Halftime Report

Battleground Stocks: Chipotle, Fitbit & Twitter

Today on the "Halftime Report" our experts debated three stocks that have been in the news lately--and not always for the right reasons.

Chipotle:

Deutsche Bank downgrades Chipotle
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Deutsche Bank downgrades Chipotle

Deutsche Bank downgraded Chipotle today on fears of a questionable recovery ahead. The analyst behind the call--Karen Short--argued that the company faced weaknesses even before last year's E. Coli outbreak. Short thinks the stock's price right now is "extremely unrealistic" and that to "own the stock at the current price you have to really believe that the recovery in 2017 will be extremely robust."

Stephanie Link doesn't entirely agree believing the company's traffic has definitely improved. She argues the fast food chain's marketing campaigns have been effective--especially in Texas and New York City--and that the stock is attractive in the long-term. Link does note, however, that the stock is expensive at current levels so she's not a buyer quite yet.

Joe Terranova, on the other hand, isn't sold on the name. He compares Chipotle's current situation to what happened to Yum! Brands years ago when the company had to remove the tarnish from its brand. There are a lot of questions surrounding exactly what Chipotle will have to do to elevate itself to previous levels. So for now, Terranova is staying out.

Fitbit:

Problems for Fitbit's story
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Problems for Fitbit's story

A second battleground stock was Fitbit. Despite beating analyst earnings expectations, the company lowered current quarter guidance causing the stock to plunge. Estimize Senior Vice President Christine Short is bearish the name. She doesn't think fitness trackers in general are a "must have product," and that there's lots of competition from devices like the Apple watch.

Stephanie Link takes a different stance. Looking at revenue, she argues that the fitness tracker has delivered solid growth. While she does think that there is opportunity for the stock ahead, she also notes that if the stock continues to move lower Fitbit could be a potential takeover target.

Twitter:

Twitter upgraded at Raymond James
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Twitter upgraded at Raymond James

Finally some good news for social media giant, Twitter. Raymond James upgrading the stock to outperform based on the assumption that earnings quality will improve.

Pete Najarian agrees with the call--he even owns the stock in the Halftime Portfolio challenge. He argues that Twitter's focus right now should be re-engaging with users it has lost along the way. If they can bring back 500,000 users it will "move the needle" for the company, Najarian argues.

Trader disclosure: On February 23, 2016 the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Halftime Report" were owned by the "Halftime Report" traders:

Pete Najarian: Long AAPL, BAC, BKE, BMY, DIS,DISCA, GE, KMI, KMI-A, KO, MRK, PEP, PFE, SAVE, VIAB. Long calls AA, AAL, AMJ, BAC, BHP, DAL, DATA, GDX, HAIN, HBAN, HOT, IBM, LC, NRF, SLV, UAL, USG, WMB, WYNN, ZIOP. Long puts DB, EWH, MRO, MUR, RIG, VLO

Stephanie Link: Long AAPL, ACE, AVGO, BAC, CCL,COST, CRM, CVX, DAL, DLPH, DOW, ESRX, GILD, GOOG, GOOGL, HON, JPM, LOW, LPX,LRCX, LULU, MCD, MGM, MS, PF, PG, PH, PM, PPG, PRU, QCOM, SBUX, SLB, SWK, SYF,TJX, UNH, V, WFC, WHR, WMT

Joe Terranova: Long VRTS