Apple rebound coming: expert

It's been a rough start to the year for Apple (AAPL).

While the stock has rallied double digits in the past month, it still has a ways to go before reaching its 52-week intraday high of $134.54.

The seemingly downward trend has not been lost on analysts. Many have downgraded the stock and slashed price targets over the past few months.

At the center are concerns over fledgling iPhone 6 sales and the fear that iPhone 7 sales will disappoint.

But Cowen and Company analyst Timothy Arcuri sees a different story. Today he upgraded the stock to Outperform, and raised his price target to $135. The move comes after he cut Apple to Market perform back in July -- the stock is down 18% since that call.

On the "Halftime Report" today, Arcuri discussed his threefold reason for the upgrade: forward estimates have bottomed, the iPhone 7 cycle will outperform, and the new OLED display screen will be a game changer.

Arcuri notes that Apple's valuation is attractive, since it trades at a "30% discount relative to its large-cap tech peers." While he doesn't anticipate the company doing anything "revolutionary" with its dividend, it's because Apple is still focused on growth.

The launch of the iPhone SE will be another positive, according to Arcuri, as the cheaper price will allow Apple to gain market share in India and other emerging markets.

Overall, the desk agrees that Apple is a safe bet -- Pete Najarian, Josh Brown, and Jim Lebenthal are all long the name.

But Shark Tank judge and O'Shares Chairman Kevin O'Leary disagrees. He sold his Apple position last September, buying Microsoft instead.

Trader disclosure: On March 30, 2016 the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Halftime Report" were owned by the "Halftime Report" traders:

Jim Lebenthal: Long AAPL, BA, C, CSCO, DCO, DIS, EEQ, GAIA, GM, INTC, JCP, KMI, KMY, MPC, OA, ORBC, PFE, QCOM, QRVO, SPLS, TIF, TRN, TWX, WGO

Josh Brown: Long AAPL, BABA, DE, DNKN, GE,JMBA, LOW, LNKD, SAM, SHAK, SPWR, TWTR, XLE, XON

Pete Najarian: Long AAPL, BAC, DAL, EGO, FIT, HAIN, HOG, KO, KSS, LC, LPX, MDLS, MET, MSFT, MXIM, NEM, POT, SCHW, SLW, TCK, UAL, WYNN, ZIOP, EWZ, GDX, SLV, COP, LVS. Long calls AAPL, AMJ, BAC, BMY, CL, CSCO, DIS, DISCA, GE, KMI, KMI-A, KO, LUX, MRK, PEP, PFE, SAVE, VIAB. Long puts CHK, DB, HAB, HES, PBR, RY, VLO

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