Shares gained $2.63, or 6.7 percent, to $41.76 after Mark Mullikin lifted his rating to "Outperform" from "Market Perform." The analyst recently surveyed a group of hernia surgeons, and he said the results show AlloDerm is far more popular than its nearest competition due to a lower rate of infection, and positive clinical data.

AlloDerm is used in hernia repair, burn reconstruction and other surgical procedures. The graft is taken from cadavers.

Most of the 33 surgeons surveyed have used AlloDerm at least once, Mullikin said. As a result, he no longer expects a sharp decrease in AlloDerm growth over the next few years, and raised his price target to $54 per share from $35.

He also believes sales of Strattice, a tissue graft taken from pigs, will be strong, as the surgeons said the source of a graft was not an important factor deciding what kind of graft to use.

Shares climbed as high as $42.07 in morning trading. The stock price has risen 62 percent this year.