The shift to state-run health insurance exchanges will likely hurt Cigna and Aetna, according to Charles Boorady from Credit Suisse Investment Research.
"I think they [Cigna and Aetna] face big challenges if insurance exchanges are implemented in 2014," Boorady told CNBC Wednesday.
He said he would not short Aetna and Cigna , but he does expect to see a revaluation. He has a "neutral" rating on Aetna with a price target of $42.
Despite the potential "major hit" to Aetna and Cigna from the looming industry changes, Boorady sees profit opportunities for some companies in the benefits and managed-care sector.
According to Boorady, Wellpoint and UnitedHealth are the "best positioned."
"United and Wellpoint built well for insurance exchanges and for the government program growth in Medicare and Medicaid," he said.
Boorady has "outperform" ratings on both WellPoint and UnitedHealth, with target prices of $66.81 and $42.52, respectively.
Credit Suisse owns shares in Aetna, UnitedHealth and WellPoint. Neither Boorady or his family own shares in companies mentioned in this article.