The downgrade to Sector Perform suggests a neutral outlook on the stock's performance, indicating that the analyst believes FirstService will perform in line with the sector. However, the increase in the price target to $170 reflects a positive adjustment in the stock's valuation, suggesting some level of optimism about its financial prospects. The mixed nature of this update (a downgrade with a higher price target) could lead to a neutral short-term impact on the stock price as investors weigh the implications of the analyst's revised expectations.