British American Tobacco p.l.c. : A good investment during crisis
By Oscar Salza
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 3,224 | GBX 0 | GBX 3,060 | -100% |
Despite of debt crisis, European market is still the main market for the company. In 2011 over than 49% of its revenue are made in the “Old Continent”. The company seems correctly valued concerning price earnings ratio.
Technically the bullish trend on the long term confirms the anti-cyclic character of sector. The share is trading within a bullish channel in weekly data. Moving averages are well oriented and support the share. The security is testing the lower band of this channel.
We suggest a long position in order to take benefit from a technical rebound towards GBp 3500. A stop loss will be placed at GBp 3060 in order to cover the position.