Designer Brands (DBI) mature DSW banner and its skew toward seasonal footwear will likely keep long-term revenue growth in the low-single-digit range, capping upside to its valuation multiple, UBS said in a note emailed Monday.

The bank said main banner DSW is likely losing share to other retail channels, and that the company's muted growth outlook should limit any expansion in the stock's price-to-earnings multiple, even as near-term retail trends improve.

UBS noted retail sales turned slightly positive quarter-to-date in Q3, with athletic footwear accelerating and dress staying strong.

UBS also pointed to continued momentum in the Brand Portfolio segment, where Topo and Jessica Simpson each grew about 24% in Q2. The company delivered 430 basis points of gross margin expansion driven by higher markups, fewer markdowns and tighter inventory controls.

UBS maintained its neutral rating on the stock and raised its price target to $6.50 from $6.00.

Price: 6.58, Change: +0.70, Percent Change: +11.90