DB - Deutsche Bank Credit Suisse upgraded by Barclays on SPAC surge

Deutsche Bank ([[DB]] +3.4%) and Credit Suisse ([[CS]] +2.0%) gain in New York trading after Barclays analyst Amit Goel upgrades CS to Overweight and DB to Equal Weight after assessing the implications of special purpose acquisition companies ("SPACs") on European banks' investment banking operations.Goel sees SPAC IPOs in 2020 and 2021 leading to $4B-$6B of industry revenue in 2021-2023, with European investment banks accounting for 25%-30% of that amount.Even if regulations on SPACs increase, the SPACs already created will add to investment banks' fees in the coming two years, the analyst wrote.For CS, Goel estimates 7%-11% upgrades in its base case and for DB, 3%-4%.His bear case sees considers a scenario where SPAC IPO volumes return to pre-2020 levels; even then, he still sees an earnings uplift from SPACs "although then we would perhaps be less constructive."Barclays analysts reviewed more than 150 SPAC deals to gauge earnings implications.Late last week,

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Deutsche Bank, Credit Suisse upgraded by Barclays on SPAC surge