GitLab gains after Morgan Stanley initiates at 'overweight'

** GitLab's GTLB shares up 5.2% to $52.57 early Weds after Morgan Stanley starts coverage of software firm at 'overweight'

** Brokerage sets PT at $70, or 40% above stock's last close

** Software development has been a "best-of-breed" market characterized by high degree of fragmentation, as ability to release and update software quickly and securely has emerged as key to accelerating pace of innovation and driving rev growth, Morgan Stanley analyst Sanjit Singh says in note

** While market not expected to gravitate towards a single vendor, Singh thinks a "wave of consolidation" will lead to a few beneficiaries

** GTLB poised to emerge as a strategic platform for DevOps/DevSecOps market, he says

** Avg rating among 27 brokerages is "buy" and median PT on GTLB is $65, according to latest LSEG data

** With move on the session, stock down 16.5% YTD vs Nasdaq's IXIC 21% advance