Petronas Dagangan up after Affin Hwang initiates coverage

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KUALA LUMPUR (Sept 6): Petronas Dagangan Bhd shares rose as much as 32 sen or 1.2% to RM27 so far today after Affin Hwang Investment Bank Bhd initiated coverage on the stock.

Affin Hwang wrote in a note today it initiated coverage on Petronas Dagangan with a "Hold" rating and a target price of RM29.

"Petronas Dagangan, the marketing arm of national-owned Petronas is a well-established brand.

"It runs over a thousand petrol stations by a name known to many. We like Petronas Dagangan's business model due to its high barriers to entry, established branding and more importantly it operates a cash-cow business," Affin Hwang said.

At 12.30pm, Petronas Dagangan shares settled at RM26.76 with 253,500 shares traded.