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Argus Research: Buy Caterpillar

Caterpillar shares getting some rare love today.

Argus Research upgraded the stock to a "buy" rating, saying they see a 20% upside potential for the stock.

The "Halftime Report" traders debated the call.

Argus research cited a strong management and balance sheet as reasons for the upgrade, as well as a business that is showing signs of improvement.

Stephanie Link, who owns the name, remains bullish. She believes that we are beginning to see a bottom in the stock, and that it has room to run. "I think if you see a little improvement on the margin side, the stock goes a lot higher," she argued.

Joe Terranova has a "hold" on the stock for now since he doesn't believe a 20% upside is likely. "They [Caterpillar] have lost pricing power, and they still haven't regained it year-on-year...that has to come back," he argued.

Josh Brown is also skeptical. He believes we've seen this pattern in the stock before, and that it always ends in disappointment. "The macro is so against them [Caterpillar] and probably still is. It's almost better to be late to a story like this than to buy it at peak and watch the whole thing fall apart," he said.

Trader disclosure: On April 26, 2016 the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Halftime Report" were owned by the "Halftime Report" traders:

Josh Brown: Long AAPL, BABA, CORE, DE, DNKN, GE, LNKD, SAM, SHAK, TWTR, XLE.

Stephanie Link: Long AAPL, AGN, APC, AVGO, BAC, CB, CCL, CMA,COST, CRM, CSCO, CVX, DAL, DLPH, DOW, EBAY, ESRX, GOOG, GOOGL, GS, HDS, HON, JPM, LEA, LOW, LPX, LRCX, LULU, MCD, MGM, MSFT, PF, PG, PH, PM, PPG, PRU, RTN,SLB, STI, SWK, SYF, UNH, UPS, URI, V, WBA, WBC, WFC, WHR.

Pete Najarian: Long AAPL, BAC, BMY, CSCO, DIS, DISCA, GE,KMI, KMI.A, KO, MRK, PEP, PFE, SAVE, ZIOP. Long Calls: AAL, ABX, AKS, AMJ, BAC,CL, DATA, EGO, ENR, EWZ, F, HAIN, KBH, KMI, KO, KORS, MT, NLNK, SBUX, SLV, SPG,TCK, UAL, XOM. Long Puts: FCX, MS, PBR, VLO.

Joe Terranova: Long VRTS.