The firm also maintained its "buy" rating on shares of the New York-based online restaurant delivery service.
"We have been gratified by the upward move in GrubHub's stock following strong Q2 results. We believe sentiment has transitioned over the past several months from 'scared-of-unicorns' to 'recognizing scale,'" Canaccord wrote in an analyst note.
The U.S. take-out food market remains large and underpenetrated by online players, according to the firm.
"With an estimated $3 billion gross food sales projected for 2016, GrubHub is likely the largest online player with just 1% of the roughly $288B market and something less than 16% of the food sales at its participating restaurants," Canaccord added.
Additionally, the firm said audience trends show that GrubHub has retained a sizeable lead, with three times the audience of the next largest player.
This has likely been helped by engagement improvements related to product enhancements, Canaccord said.
The firm believes the company's recent brand refresh, ongoing product improvements, delivery network and maturing tier two markets will all help metrics in the second half of 2016.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share.
But the team also finds that the company's return on equity has been disappointing.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: GRUB