Of course it is. Here is a link for the datasheet, look at page 111
http://www.futurebots.com/16f877.pdf
I will give you a run down of the steps and we can go from there.
1.) Setup analog read ports for the LM35DZ before the main loop
-> ADCON1 register (Select the result format and the reference voltages)
-> ADCON0 register (Select clock speed, select channel, turn on A/D)
2.) Configure the interrupt if you want to use that
3.) Main loop
->Set the Go/Done bit
->Wait for the bit to be cleared
->Your result is in the ADRESH and ADRESL registers
->Map your LED matrix to ports and print the numbers
->Add wait delay before next acquistion