Shares of Omrix Biopharmaceuticals Inc. rose Monday after Brean Murray Carret initiated coverage on the company with a "Buy" rating, citing the market potential for the company's products and speculating on the possibility of a buyout.

The biotech stock gained 49 cents to $29.35 in afternoon trading on the Nasdaq, after setting a fresh 52-week high of $30.49 earlier in the session. The stock's previous year high of $29 was set on Friday.

The biotech company's lead products include Evicel and Crosseal, both of which are used to stem bleeding, or for homeostasis, during liver surgery. The products, called fibrin sealants, promote clot formation. Evecel is also undergoing two additional clinical trials as part of a move by the company to get it approved for use in general surgery.

Analyst Jonathan Aschoff initiated coverage with a "Buy" rating and a $35 price target. He cited the company's marketing partnership on Evicel and Crosseal with Johnson & Johnson as a key reason for the rating, saying Omrix could be a possible buyout target.

"Since we view Omrix's business as relatively low-risk and on the brink of such robust revenue growth, it therefore makes for a very rational acquisition by J&J," he wrote.

Johnson & Johnson already made an offer for the company before it went public in April.

Evicel is superior to products currently on the market, he wrote, and it is poised to gain more market share with additional FDA approvals.

The company's immunotherapy business, which included developing treatments for West Nile virus, smallpox and hepatitis B-related liver transplants, is another positive, the analyst wrote.