Urban Outfitters (URBN) - Get Report  shares rose on Monday after Wells Fargo upgraded its rating on the retailer, citing progress with turnaround efforts.

The Philadelphia home accessories and apparel chain's stock advanced 4.1% to $27.27 after analyst Ike Boruchow boosted his rating to outperform from market perform, published reports say.

Boruchow raised his price target to $30 a share from $25, citing progress in the retailer's efforts to turn around the Urban Outfitters and Anthropologie brands after two or three quarters marked by weak financials, Bloomberg reports.

If Urban Outfitters' third-quarter numbers, due out in November, show significant improvement, the turnaround would be the fastest in the company's history, he wrote. Course corrections usually take 18 months, he said.

Urban Outfitters' second-quarter revenue fell short of the estimates of analysts surveyed by Zacks Investment Research.

To combat softer demand, both Urban Outfitters and Anthropologie offered more markdowns, which cut into profit margins.

But in the third quarter Urban Outfitters executives have seen a "favorable response to its early fall-apparel assortments," and comparable store sales are up across its brands, which also include Free People, Zacks noted.