You can upgrade it but you'll be limited by the power supply. They list the power supply as 350/500. If you open the the case you should be able to see the power supply specifications listed on the side of the power supply. You should also check to see if the power supply has any PCI-express power connectors if you're looking at a card that requires it.
Personally, I would replace the power supply and get a good mid-range video card based on your budget for the upgrade.
The suggestions will depend on the budget. It's unlikely the power supply is a quality unit which is why most people would recommend replacing it with something better.
As far as the video card goes, it depends on your expectations, resolution you play at and the games you play. Putting a high end video card in with a CPU that can't keep up won't make much sense.
For mid-range gaming I'd suggest either a GTX 960 or a R9 380. The GTX 960 has lower power requirements so that would be my first choice.
For the power supply I like Corsair, Antec and EVGA. Never had issues with any of them. Something in the 500w-600w range would be more than enough.
Another consideration is a used video card, you can find some really good deals on older generation cards that may be more within your budget. With any card you need to also check the physical size to be sure it will fit in your case.
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