UPDATE: Raymond James Downgrades Yelp Amid 'Solid' Q2 Results

In a report released earlier today, Raymond James analyst Aaron Kessler downgraded shares of Yelp YELP from Outperform to Market Perform and removed his $80 price target on the stock.

Kessler acknowledged that Yelp posted better-than-expected results on a number of metrics. However, his downgrade was driven by significantly lower-than-expected active local net adds (5,900 vs. 7,700) and the belief that, at the current levels, the risk-reward is more balanced.

Looking ahead, Kessler has increased his full-year 2014 revenue and EBITDA estimates from $365.5 and $66.0 million to $373.2 and $68.4 million, respectively.

Amid the downgrade, shares of Yelp are down 11 percent.