The shares of NXP Semiconductors (NXPI) are rising after Goldman Sachs named the company its top pick in the semiconductor space and upgraded the shares to Buy from Neutral.

GOLDMAN TOP PICK: NXP's growth should surpass the average of its peers, driven by the strength of its auto semiconductor business, according to Goldman analyst Toshiya Hari. Meanwhile, the company should benefit from cost synergies it will obtain as a result of its acquisition of Freescale Semicodncutor, according to the analyst. NXP "has ample opportunity" to cut its costs and reduce its debt, Hari believes. Moreover, NXP provides investors with "compelling free cash flow growth," and the shares are undervalued, the analyst stated. Predicting that the company's multiple will rise, Hari's price target on the name increased to $110 from $80.

JEFFERIES FRANCHISE PICK: On April 29, Jefferies analyst Mark Lipacis added NXP Semiconductors to his firm's Franchise Pick List and raised his price target for the shares to $130 from $112. Lipacis expects NXP to be among the highest free cash flow and market share growers over the next two years.

WHAT'S NOTABLE: Bloomberg lists Skyworks (SWKS), Microsemi (MSCC), Broadcom Limited (AVGO) and Cirrus Logic (CRUS) among its comps to NXP. Cirrus was downgraded this morning to Equal Weight from Overweight at Barclays, citing the company's high reliance on Apple (AAPL) the firm's expectations for a weaker iPhone 7 cycle.

PRICE ACTION: In early trading, NXP rose 1.7% to $85.25.