Needham & Company analyst Kerry Rice raised estimates and his price target on Buy-rated Yelp (NYSE: YELP) to $43.00 (from $42.00) following strong Q3 results. Meanwhile, the analyst sees several levers to sustained momentum into 2017.

Rice commented, "Yelp posted 3Q16 upside driven by accelerating Local Advertising with particular strength in self-service, as well as expanding leverage. We are raising our estimates to reflect the upside and momentum in Local Advertising. We are encouraged by the improving productivity of Yelp's salesforce, increase in self-service adoption, and growth in National Accounts revenue. We believe several levers exist to drive revenue upside, including ongoing productivity improvements, higher average revenue per account (ARPA), higher repeat and retention rates, and increased user engagement. As revenue scales and the shift toward more performance marketing coupled with initiatives encouraging higher advertising levels and reduce churn, we believe Yelp's EBITDA margin should march towards long-term target range of 35-40%."

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Shares of Yelp closed at $32.48 yesterday.