Sandler O'Neill & Partners LP analyst Sumeet Mody resumed coverage on Carlyle Group LP, writing that the private equity giant still has room for growth despite its recent share outperformance.

The analyst praised Carlyle Group's fee-related earnings, which are seeing momentum through the company's latest fundraising cycle in new and existing funds.

Mody added that the company's growing investment base, continued maturity of funds and strong performance should materially improve performance fees over the next couple of years.

The analyst gave Carlyle Group a "buy" rating with a price target of $35. His EPS estimates are $1.64 and $2.16 for 2019 and 2020, respectively.