KUALA LUMPUR (Feb 23): Perak Transit Bhd shares rose 1.64% in active trade this morning after PublicInvest Research initiated coverage on the stock with an "outperform" rating at 30.5 sen and target price of 51 sen.

At 10.40am, Perak Transit was up 0.5 sen at 31 sen with 8.91 million shares done.

Perak Transit is involved in operating an integrated bus terminal, Terminal AmanJaya, in Ipoh. It also provides stage bus and express bus services around Ipoh and operates four petrol stations.

In a note today, PublicInvest said Perak Transit plans to replicate its increasingly successful business model in other cities in Perak.

"We anticipate a four-year CAGR of 15.1% from FY16 to FY20, mainly coming from the completion of the 10-storey bus terminal in Kampar.

"We initiate coverage on Perak Transit with an outperform call and target price of 51 sen, based on a 10-year DCF valuation, suggesting a potential upside of 67.2%," it said.