According to Baird, the SpaceX IPO, which took place on Friday, has resulted in the creation of numerous millionaires and billionaires among its employees. This surge in wealth has prompted over 100 current and former SpaceX employees, with assets totaling between $1 billion and $5 billion, to form a group aimed at negotiating lower fees with wealth management firms.
Baird views this as a significant opportunity for Andersen Group, a wealth advisory firm based in San Francisco, which has already seen its stock rise 46% this year and an 8% increase on the day of the IPO. The firm is expected to attract high-net-worth individuals (HNWIs) from California and Texas, particularly as interest in luxury goods and real estate has increased among SpaceX employees.
Baird anticipates that Andersen Group could further benefit from additional IPOs in Silicon Valley over the coming year. Currently, five out of seven analysts covering Andersen Group have rated it as a strong buy or buy, with an average price target suggesting a 6% upside