Wells Fargo: Western Digital is expected to release positive signals on Analyst Day before the spin-off, giving it a "Buy" rating

Wells Fargo has included Western Digital in its 2024 third-quarter Tactical Ideas list, giving it an "overweight" rating with a target price of $95. Western Digital plans to spin off its flash and hard drive businesses into two separate listed companies, with the spin-off plan expected to be finalized in the second half of 2024. Wells Fargo stated that Western Digital has the ability to restore the gross margin of HDD to above 35%, and it is expected that the gross margin may exceed this target in 4-6 quarters. The CEO of Western Digital stated that the flash business has market growth potential and the emerging development of disruptive new storage technologies