Synergies will take longer to materialize! Citi raises Skydance (SKYD.US) synergy costs to $4 billion, but still maintains a "Buy" rating.

Zhitong Finance APP has learned that Citi released a 3Q26 model update report on Skydance Corp (SKYD.US). In the report, the analyst team led by Jason Bazinet stated that based on the company's latest guidance, the total cost of achieving synergies has been raised from the previous $3.2 billion to $4 billion, and the timeline for realizing synergies is expected to be extended. At the same time, management's comments on the weakness of the Warner Bros. business prompted Citi to lower its Studio segment revenue forecast. However, the report believes that there will be no structural changes in the company's underlying business, and therefore maintains a "Buy" rating and a $10 price target, corresponding to approximately 8x 2028 expected EV/EBITDA.