Shares of Glu Mobile (GLUU) - Get Report moved sharply higher Wednesday after a top analyst kicked off coverage of the developer of mobile games for smartphones and tablets with a bullish note.

Glu's stock price jumped nearly 5.4% to $5 after D.A. Davidson initiated coverage with a buy rating and an $8 target price.

The developer of software for the $70 billion mobile game industry provides a promising vehicle for investors looking to cash in on the fast-growing sector.

Glu is now ramping up work on dozens of games as it hunts for a mega hit, with the firm's "growth story" in its "early innings," analysts at D.A. Davidson wrote.

Glu is now poised to post big sales and revenue gains in the years ahead, even as the firm's stock currently trades at a discount compared to other companies in the sector, the analysts noted.

While the company's second-quarter revenue came in lower than analysts' estimates Glu Mobile has since seen its stock rating upgraded twice by other brokerage firms before D.A. Davidson kicked off coverage Wednesday with a buy rating.

"GLUU will be looking to display strength as it nears its next earnings release," noted Zacks Investment Research, with Zacks projecting a 10.5% jump in revenue for the quarter to $111.27 million.