British American Tobacco is No. 2 worldwide in the production and distribution of tobacco. The group also produces cigars, rolling and pipe tobacco. In its portfolio we can find over 200 brands.

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.