Brookfield Infrastructure Partners' (BIP) portfolio will likely deliver "resilient financial performance" even as investors are focusing on the conflict in the Middle East, RBC Capital Markets said in a note emailed Thursday following meetings with company executives.

The meetings focused on topics like the company's recent business performance and cash flow profile "which appear misaligned with the unit's recent price underperformance," RBC said.

Other subjects included the "conduciveness of the M&A market to support [Brookfield's] $3 billion asset sale target for 2026" as well as the "advancement of its record backlog of over $9 billion, particularly in the Data segment," the note said.

RBC highlighted the fact that 85% of Brookfield's funds from operations, or FFO, is "contracted or regulated, with the segment with the lowest percentage (Midstream at 75%) possessing upside potential amid today's relatively [favorable] commodity price environment."

Also, 85% of Brookfield's funds from operations is "protected from, or indexed to, inflation" with 70% of FFO featuring margin expanding inflation indexation, and 15% of FFO with margin neutral inflation protection, the note said.

RBC has an outperform rating on Brookfield and $41 price target.