The Zacks Analyst Blog Highlights: Viacom, Adobe Systems, News Corp, Time Warner and Catalyst Health Solutions

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Mar 22, 2012, 09:30 ET

CHICAGO, March 22, 2012 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Viacom, Inc. (Nasdaq: VIAB), Adobe Systems Inc. (Nasdaq: ADBE), News Corp (Nasdaq: NWSA), Time Warner Inc. (NYSE: TWX) and Catalyst Health Solutions Inc. (Nasdaq: CHSI).

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Here are highlights from Wednesday's Analyst Blog:

Viacom to Boost Advertising Sales

In a bid to revamp the advertising revenue, Viacom, Inc.'s (Nasdaq: VIAB) introduced Surround Sound that promotes target advertising and eventually favors its advertisers. To carry out this process the company has implemented Adobe Systems Inc.'s (Nasdaq: ADBE) AudienceManager, a popular product that offers data management solutions to its client.

It is believed that most advertisements do not reach the target audiences. Moreover, with the availability of so many digital platforms, it becomes rather impossible to track the taste and preferences of the target audiences.

Furthermore, the recent slump in the global economy has also forced many advertisers to reduce their advertisement budgets. According to a data released by eMarketer, it is believed that about one-third of the marketers in U.S. will focus on target advertising.

Thus, introduction of Surround Sound by Viacom will enable these advertisers to gain profound knowledge about their target customers. Moreover, Adobe's AudienceManager, with the help of cookies and pixel tags, will play a leading role to collect information on customer taste and preferences.

Viacom, a large media content company, offers most of its entertainment brands through television, motion picture, Internet, mobile and video game platforms across the globe. Advertising forms an integral part of such media related companies.

In 2011, Viacom's advertisement business generated 30% of the total revenue. However, in the last quarter of fiscal 2011, the company reported decline in advertising revenue, which we believe has triggered the company to introduce such methods to gain the confidence of the advertisers.

Presently, the company is facing intense competition from other media companies like News Corp. (Nasdaq: NWSA) and Time Warner Inc. (NYSE: TWX).

We maintain our long-term Neutral recommendation for Viacom. Currently, it has a Zacks #3 Rank, implying a short-term Hold rating on the stock.

Based in New York, Viacom Inc. is a leading entertainment content company that operates primarily in the U.S. and Europe.

Catalyst Health Signs PBM Deal

On Monday, Catalyst Health Solutions Inc. (Nasdaq: CHSI) announced a long-term agreement with Regence Rx Inc. to exclusively provide pharmacy benefit management ("PBM") service to the latter's clients through its PBM unit - Catalyst Rx. Catalyst Health will also take over Regence's PBM staff, technology and internal client service assets. Moreover, the two companies will jointly create a pharmacy center of excellence in Northwestern U.S.

The deal will be effective from May 1, 2012 to December 31, 2017 and carries an option for an extension till December 2021. The PBM services covered by the agreement include claim settlement, mail and specialty drug management, rebate contracting, member services, network administration, data reporting, analytics, client service and sales support services. However, Regence will carry on offering clinical and contracting services to its clientele.

Both Catalyst Health and Regence will be mutually benefited by the agreement. Regence will be able to enhance its customer service on the back of Catalyst Health's efficiency in the PBM business, its large operating scale, well-established provider network and product development capabilities. On the flip side, the PBM business of Catalyst Health will get a boost as Regence Health Plans cover over 1.2 million policyholders.

Cambia Health Solutions Inc.'s subsidiary – Regence's forte lies in providing affordable PBM services. Apart from PBM, the company also offers related clinical and contracting support services to the members of other Medicaid and Blue Cross and Blue Shield plans.

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