Jefferies Upgrades GSK To Buy, Anticipates Positive Earnings Momentum

Jefferies is upgrading GlaxoSmithKline (NYSE: GSK) to Buy from Hold.

“After underperforming the UK market by 11% since we moved our rating to hold from Buy on 15 September 2010, we have upgraded the shares to Buy,” Jefferies writes. “We expect that the re-introduction of the share repurchase program combined with a light patent expiry schedule should deliver positive earnings momentum and a 10% underlying EPS growth CAGR between 2010-15E.”

GlaxoSmithKline closed Monday at 38.77.