Dave Shove at BMO Capital Markets has inserted a few words of caution into the rather giddy talk about hospital operators' prospects in a reformed health care landscape. Saying that there are simply too many variables in play to predict just how these companies will do in 2014 and beyond, Shove has cut his rating on shares of Community Health Systems to 'underperform' from 'market perform.' His target for CHS (Ticker: CYH) is $35, about 10 percent below the stock's current levels. "We believe the recent move in valuation is premature. Medicare Advantage preliminary rates for managed care carriers are due for release this week and the sequestration deadline is inching closer. We believe these events could reignite investor concerns around government reimbursement and the real macro pressures affecting the space."

Morgan Stanley has launched coverage of HCA Holdings shares. The firm sees the biggest for-profit hospital player (Ticker: HCA) climbing to $47 from its current levels around $36 and is telling investors to overweight it.