The CSL Ltd (ASX: CSL) share price closed higher today, finishing 2.37% in the green at $262.62.
The gain comes despite nothing remarkable coming out of the biotech giant's camp today.
However, the company's shares jumped from the open, trading as high at $264.17 apiece and as low as $258.53 each during the day.
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What happened?
There's been nothing price-sensitive out of CSL's corner today. However, it appears that healthcare shares, on the whole, are strengthening this week.
The S&P/ASX 200 Health Care Index (XHJ) gained around 2% from the start of trade today, finishing 1.86% higher.
CSL is also on the rise this week, as illustrated by the chart below.
In a note that bodes well for CSL, analysts at Citi have pointed out potential growth in the blood plasma collection industry.
The broker reckons that CSL's blood plasma collection volumes could normalise to pre-pandemic levels, which could have a positive impact on the company's share price.
Currently, more than 87% of brokers covering CSL have it as a buy right now whereas just two firms have it as a hold, according to Bloomberg Intelligence. Indeed, there are no analysts urging clients to sell the company right now.
So what?
Lower bood plasma collections have plagued CSL's growth engine since late 2020 when volumes took a huge hit amid the COVID-19 pandemic.
CSL is offering some donors incentives in a bid to increase volumes. At the same time, it was reported CSL upped its payment to US donors during the pandemic to entice people to keep their appointments. CSL is one of a handful of blood plasma collection vendors around the world.
Recently, on 10 March, the company advised that it had received clearance in the US for use of the Rika Plasma Donation System developed by Terumo Blood and Cell Technologies.
"CSL Plasma believes additional features of the new Rika system can enable the collection of more plasma, in shorter periods of time, supporting quality and safety, and ultimately better serving patients who rely on plasma-based therapies," the company said in a statement.
Citi's rating appears to recognise CSL's efforts to drive its collection volumes higher.
CSL share price snapshot
In the last 12 months, the CSL share price has climbed almost 4% but is down almost 10% this year to date.
During the past month, things have turned around with the company's shares gaining almost 6%.
CSL has a market capitalisation of more than $126 billion.
