He never talks to me but his friends keep suggesting that I go out with him?

I suggest a little one on one with him. It could be that he is really shy or awkward with women. Try to get him talking when he's away from everyone else and he'll open up in no time, then go from there!

Well these guys know both you and him, so they may think you two are compatible or he likes you, etc. Next time they mention it, ask them why they did so. This way, you can figure out what is going on. Next time you see him, try to act a little friendlier and try talking to him. Maybe you two will click!
My friend and I met this guy who was friends with another friend. Both of us didn't think anything of it. A few days later, the friend texts my friend and says that they guy we didn't think anytiing of would be perfect for her. The next day, it just so happened they saw each other and WOW they hit it off. Now they are dating. So you never know! They might see something that you don't.

His friends might have many reasons for saying you should go out with him. But since he has not asked you himself I think he is not interested in you.

He probably has a girl friend. Please investigate this. If he is very handsome probably he has other girlfriends.

His friends may just be trying to make fun of you.