J.M. Smucker (SJM) reported a mixed set of Q2 results, but the "less bad" thesis is still intact, RBC said in a Wednesday note.

The note said the company beat Q2 topline expectations and posted an in-line EPS, but forward guidance was underwhelming, particularly given the recent removal of tariffs on green coffee.

The report also pointed to a mixed segment performance, with outperformance in coffee and sweet baked snacks offset by underperformance in pet and frozen handhelds & spreads.

"Despite the puts and takes, we believe that SJM's business has demonstrated an improvement in fundamentals once again and results are getting less bad overall," the note said.

RBC kept its $130 price target and outperform rating, saying the current valuation embeds a long-term growth rate that's too low.

Price: 102.92, Change: +2.54, Percent Change: +2.53