Wealth advisory firm Andersen Group is a potential beneficiary of SpaceX’s initial public offering, Baird said. SpaceX, which went public on Friday, has created thousands of new millionaires and several billionaires. Earlier this week, CNBC reported that more than 100 current and former SpaceX employees, with combined assets of $1 billion to $5 billion, have formed a group to negotiate lower-than-standard fees with asset managers. Baird sees this surge in wealth as a catalyst for San Francisco-based Andersen Group. The stock has risen 46% since the beginning of the year and ended Friday trading 8% higher. ANDG YTD Mountain ANDG YTD Chart “SpaceX’s IPO is expected to create thousands of new millionaires and multiple new billionaires, expanding ANDG’s target market,” Baird wrote. Baird added that interest in luxury homes has recently increased among SpaceX employees in their mid-30s to early 40s, according to California real estate agents. At the same time, interest in first-class airline tickets and luxury watches is also increasing in California and the Austin area. “With the significant new influx of wealthy individuals into California and Texas, ANDG has an opportunity to significantly expand its customer base and deliver significant value,” Baird wrote. “ANDG could benefit further as other major Silicon Valley IPOs are scheduled for this year and next.” Of the seven analysts currently covering the stock, five have a strong buy or buy rating on Andersen Group, while two have an affirmative rating. The average price target implies an upside of 6%.
