RBC Capital analyst Mark Mahaney reiterated an Outperform rating and $88 price target on Yelp (NYSE: YELP) following Q2 results. The analyst still see a series of identifiable growth gap-up opportunities and clear strategic value.

The analyst noted positive fundamentals… "10th straight quarter since IPO of 60%+ Y/Y Revenue growth (relatively rare and speaks to TAM size and good execution) and EBITDA Margin hit a record high 19% (speaks to inherent leverage in a 93% Gross Margin business). Growth outlook (Revenue and EBITDA) is TWTR-esque…130% EBITDA growth in 2014"

He also highlighted key metric, "1) Unique Visitors – Y/Y growth decelerated 3 pts to 27%, with Google algo changes a possible International headwind; 2) Reviews – Y/Y growth of 44% was very consistent; 3) Active Business Accounts – Y/Y growth of 55% did come in light, with 5.7K Net Adds lower vs. Q2:13 and Q1:14…but we believe the softness was from lower-quality/ARPU Deal Accounts as opposed to core Subscription Accounts; & 4) Cohort Trends – All 3 of YELP’s cohorts delivered accelerating Y/Y revenue growth…impressive."

‘15 Rev increases 6% to $562MM & EBITDA increases 8% to $122MM.

For an analyst ratings summary and ratings history on Yelp click here. For more ratings news on Yelp click here.

Shares of Yelp closed at $75.60 yesterday.