Square (SQ) is up 5% today on positive analyst notes from Goldman Sachs and Pacific Crest. Both analysts place $15 targets on the stock hitting near-term resistance at $12.50. The biggest issue with chasing the stock above $12.50 is the valuation reaches $5.6 billion at that key resistance level. At the $15 target, Square is a $6.75 billion stock. Goldman Sachs is bullish on the mobile payments processor shifting up to larger merchants reaching up to $20 million in annual volumes. Such a shift definitely grows the TAM for payments. The problem though is that nearly 125 million stock options not included in the valuation metrics of most financial websites understates the valuation. Adjusted revenues could reach $900 million next year so if one wants to own Square make it occur on a break above $12.50 and be careful chasing above $15 due to valuation concerns. So far today though, Square is pulling back and might provide a much more ideal entry point around $11.75. More research:Square: Why Didn't You Buy Below $10?Disclosure: No position