Technitrol Surges After Analyst Upgrades

NEW YORK (AP) — Shares of Technitrol Inc. bucked the broader market's downdraft Wednesday after a Wall Street analyst upgraded his rating on the stock because the maker of engineered electronics components appears poised to significantly cut its debt.

CL King analyst Michael W. Gallo upgraded the shares to "Accumulate" from "Neutral" after the Philadelphia company said Tuesday it was selling its Denmark-based Medtech components unit to a private equity fund for $200 million.

Technitrol said the sale will allow it to trim its interest expense on outstanding debt by roughly $2 million and immediately improve its debt-to-EBITDA ratio, referring to earnings before interest, taxes, depreciation and amortization. That ratio is often a critical component of debt covenants. ...