---
title: "Wells Fargo: Western Digital is expected to release positive signals on Analyst Day before the spin-off, giving it a \"Buy\" rating"
description: "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 har"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/207747612.md"
published_at: "2024-07-02T07:35:03.000Z"
---

# 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

According to the Intelligence Finance app, Fuguo Bank released a research report, listing Western Digital (WDC.US) in its 2024 third-quarter Tactical Ideas list with a "Buy" rating and a target price of $95.

Fuguo Bank stock analyst Aaron Rakers stated in a report, "Western Digital is moving towards the direction of spinning off its flash and hard disk drive (HDD) businesses into two independent listed companies. Prior to the spin-off, after submitting an application to the U.S. Securities and Exchange Commission, Western Digital will hold an analyst day, which we expect to be a positive catalyst as the company may provide detailed information on the two companies' independent operating models and planned capital/asset structures."

In October last year, Western Digital announced this spin-off plan and indicated that the transaction is expected to be finalized at some point in the second half of 2024.

Rakers added, "We are increasingly confident in Western Digital's ability to restore HDD gross margins to a long-term range of over 35%, and with the accelerated recovery of nearline hard drive products and the industry's focus on the return on investment from large-scale manufacturers accepting reasonable price increases for nearline hard drives, gross margins may exceed this target in 4-6 quarters."

Western Digital CEO David Goeckeler stated, "Once the spin-off is completed, both companies will have strategic focus and resources to pursue exciting opportunities in their respective markets. The flash business offers exciting possibilities with market growth potential and emerging disruptive new storage technologies."

Fuguo Bank pointed out that Western Digital's competitor Seagate Technology (STX.US) has begun to gain traction with its heat-assisted magnetic recording-based nearline hard drives

### Related Stocks

- [WDC.US - Western Digital](https://longbridge.com/en/quote/WDC.US.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.