The increase in price target by a reputable analyst firm like Keefe, Bruyette & Woods can be seen as a positive endorsement of Blend Labs' current valuation and future prospects. This adjustment suggests a belief in the company's potential for growth or stabilization, which could positively influence investor sentiment and potentially lead to a short-term increase in stock price. However, the 'Market Perform' rating indicates that the firm does not see the company outperforming the market significantly, which tempers the potential impact.