IIFL has initiated a sell rating on GlaxoSmithKline Consumer Healthcare with a 12-month target price of Rs 587 in its July 2, 2008 research report. "GSK Consumer is the market leader in the malted-beverages category, with brands such as Horlicks, Boost, Maltova and Viva. We expect a significant deceleration in the company’s earnings growth as EBITDA margin drops on high raw-material cost and rising ad expenses on new product launches."

"The stock is trading at a one-year-forward PE of 14.3x, in line with its five-year PE average. Initiate with a SELL and a 12-month target price of Rs 587, based on a target PE of 12x on one-year forward earnings," says IIFL's research report.

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