The reiteration of the Outperform rating suggests that Telsey Advisory Group remains positive on ThredUp's prospects. However, the reduction in the price target from $4 to $3 indicates a tempered expectation for the stock's performance in the short term. This could be due to a variety of factors not specified in the article, such as market conditions, company performance, or sector trends. Investors might view this as a sign of cautious optimism, potentially leading to a neutral short-term impact on the stock price as the market digests the news.