Shares of Western Digital Corp. /zigman2/quotes/204213617/composite WDC -2.84% are up 8% in Wednesday afternoon trading after the company announced it would reorganize itself by creating separate units for its flash and hard-disk drive [HDD] businesses. "The business reorganization could be a first step towards a formal split between the two units longer term, which would unlock stock value, relieve the company from heavy capex investments and emerging competition from China, while resulting in a more focused HDD business," Baird analyst Tristan Gerra wrote in a note to clients, while reiterating an outperform rating and $50 target price on the stock. Others saw less room for big business-model changes but still pointed to possible benefits. "We believe the move is an indication of the new CEO's goal to better strategically align R&D/product development resources towards growth end markets," wrote Susquehanna's Mehdi Hosseini, who has a positive rating on the stock. WDC shares have fallen 9.4% over the past three months as the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.34% has gained 5.2%.