Synergy effects will take even longer! Citi raises Skydance (SKYD.US) synergy costs to 4 billion, but still maintains a “Buy” rating

智通财经APP has learned that Citi has released a 3Q26 model update report on Skydance Corp (SKYD.US). The analyst team led by Jason Bazinet indicated in the report that, based on the company’s latest guidance, the total cost to realize synergies has been raised from the previous $3.2 billion to $4.0 billion, and the time frame to achieve these synergies is expected to be extended. Meanwhile, management’s comments on the weak Warner Bros. business led Citi to lower its revenue forecast for the Studio business. However, the report believes the company’s underlying business will not undergo structural changes; therefore, the “Buy” rating and $10 target price — corresponding to roughly 8 times the projected 2028 enterprise value/EBITDA — are maintained.