Can Eli Lilly keep going up?

StoneCastle Investment Management president and portfolio manager Bruce Campbell says Eli Lilly (Eli Lilly  Stock Quote, Chart, News, Analysts, Financials NYSE:LLY) offers investors a defensive healthcare investment with accelerating revenue and earnings growth.

Speaking on BNN Bloomberg’s Market Call on Oct. 19, Campbell said the pharmaceutical giant is benefiting from growing demand for its diabetes and obesity treatments.

The investor said adoption of both drugs is accelerating, supporting stronger financial performance.

“If you look at what Eli Lilly has done, they’ve had decent numbers, but now those numbers are starting to accelerate,” Campbell said.

He arued that the company also has several other areas of drug development that could contribute to future growth.

Campbell said Eli Lilly’s size and diversified pharmaceutical business make it attractive as investors look for more defensive positions.

He also sees renewed investor interest in healthcare after a period when capital flowed toward other high-growth sectors.

Campbell said improving earnings growth, combined with greater investor interest, could support higher valuation multiples for Eli Lilly.

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