National Semiconductor Rises on Upgrade

Shares in National Semiconductor are rising after it was upgraded by Banc of America on its potential for profit-margin improvement.

Analyst Sumit Dhanda upgraded the company to "Neutral" from "Sell" and said profit-margin improvement and share buybacks can offset lackluster sales.

Dhanda warned that the company's lack of sales growth is becoming increasingly obvious and that the company walks away from business that does not match its high profit-margin goals.

The company might not have the potential for sustained share price appreciation, so a neutral stance was best, he said.

National Semiconductor shares rose $1.22, or 6.3 percent, to $20.66. They have traded in the past year between $16.21 and $29.69.