Generic drug manufacturer Teva saw its fair value increase to $21 per share from $17. "Teva's robust third-quarter sales exceeded our expectations," says Morningstar equity analyst Keonhee Kim. "Total sales of $4.3 billion were up 12.5% year over year, meaningfully higher than our high-single-digit expectation, with broad-based growth across regions. Management raised its full-year revenue and earnings per share guidance by low single digits at the midpoints. Given continued solid execution by the firm, we have slightly lowered our cost of debt assumption. This reflects our increased conviction in Teva's ability to deleverage the balance sheet and improve cash flows from new products. Our outlook is substantiated by a recent rating upgrade by Fitch—the first time the agency has upgraded Teva's rating in over a decade—as well as outlook upgrades from the other two major agencies.