NEW YORK (TheStreet) -- Square (SQ) - Get Report stock was started with a 'sector weight' rating at Pacific Crest, which argued that the company's fair value ranges between $10 and $11, while its bull case is $15. 

Shares are flat in pre-market trading on Monday after closing up 0.58% to $10.32 in Friday's trading session.

The mobile payment company's next "critical milestones" are moving beyond processing and moving up market, according to the firm.

Square has quickly achieved scale by gaining more than 2 million active sellers, and will likely be able to achieve these goals, Pacific Crest noted.

Although Square has the potential for $1 billion or more in annual originations, the company faces an "uncertain" regulatory environment for small business lending, Pacific Crest continued. 

"While we are constructive on the core processing opportunity, our optimism is balanced by the market's high expectations for execution and the nascency of lending and software initiatives," the firm wrote in a note. 

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