Walmart's (WMT) Q2 profit miss was not ideal, but was due to non-core items and not representative of underlying business trends, RBC Capital Markets said in a Thursday note.

"Walmart clearly has top-line momentum, and we expect price gaps, specifically in grocery, to widen in H2, which should support continued market share gains," the note said.

RBC analysts said they now expect Q3 net sales growth of 4.7%, up from 3.3% previously.

The report also pointed to Walmart investing to keep prices lower for consumers despite higher tariff-related costs.

"These investments likely limited near-term margin progress, but are likely to contribute to continued market share gains as price gaps widen," the note said.

RBC kept its outperform rating and price target of $106.

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