This wealth advisor stock should benefit as clients get rich from SpaceX IPO, says Baird
Wealth advisor firm Andersen Group could be a less-than-obvious beneficiary of the SpaceX initial public offering, according to Baird. SpaceX, which went public on Friday, 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 between $1 billion and $5 billion created a group to negotiate lower-than-standard fees with wealth management firms. Baird sees this pop in wealth as a catalyst for the San Francisco-based Andersen Group. The stock has surged 46% this year and ended Friday’s session 8% higher. ANDG YTD mountain ANDG YTD chart “The SpaceX IPO is expected to mint thousands of new millionaires and multiple new billionaires, expanding ANDG’s target market,” Baird wrote. Baird added that interest in luxury homes has increased recently among SpaceX’s mid-30s to early-40s employee base, according to California real estate agents. Simultaneously, interest in first-class plane tickets and high-end watches has also ticked higher in California and around Austin. “With this significant new influx of HNW individuals in California and Texas, ANDG has the opportunity to materially expand their client base and provide significant value,” Baird wrote. “ANDG could see further benefits as other major Silicon Valley IPOs come through this year and next.” Of the seven analysts currently covering the stock, five have rated Andersen Group a strong buy or buy, while two see it as a hold. The average price target implies upside of 6%.
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