Analyst action: CHS, Acadia

Darren Lehrich at Deutsche Bank says investors should look past the weak fourth-quarter volumes at Community Health Systems — they were off 7 percent — and focus instead on the upside from the Accountable Care Act, which could reach $170 million this year, and the cost benefits of buying Health Management Associates. Even though he has lowered his price target to $58 from $62, Lehrich has reiterated his 'buy' rating. CHS shares (Ticker: CYH) opened Wednesday trading at $43.12.

The researchers at Citigroup has done something we recall seeing only once before: Citing a lofty valuation, they've lowered their rating on shares of Acadia Healthcare to 'neutral' from 'buy' — albeit with the caveat that they're raising their price target to $49 from $43. Shares of Acadia (Ticker: ACHC) opened this morning at $48.50.