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Looking for undervalued stocks? Value investors look for opportunities to buy stocks that are trading at significant discounts to their fair value, with the assumption that they’ll move up to their fair value in the near future. One proxy for fair value is analyst target price.

We ran a screen on technically oversold stocks from the tech sector for those trading at steep discounts to their analyst target prices, which may indicate that they are undervalued.

But because target prices are notoriously inflated, we only used the most pessimistic (the lowest) target prices, and for stocks with sufficient analyst coverage we only screened for stocks with 5 or more analyst ratings.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these stocks should be trading higher? Use this list as a

List sorted by potential upside implied by target price.

1. Optimer Pharmaceuticals, Inc. (NASDAQ:OPTR): Focuses on discovering, developing, and commercializing hospital specialty products worldwide. Market cap of $511.28M. RSI(14) at 33.0. Of the 9 analysts that have set a target price on the stock, the lowest price target stands at $14.50. This implies a current upside of 34.51% from current levels around $10.78. The stock is a short squeeze candidate, with a short float at 15.05% (equivalent to 5.01 days of average volume). It's been a rough couple of days for the stock, losing 23.46% over the last week.

2. Xenoport, Inc. (NASDAQ:XNPT): Focuses on developing and commercializing internally discovered product candidates that utilize the body's natural nutrient transport mechanisms to enhance the therapeutic benefits of drugs. Market cap of $186.77M. RSI(14) at 37.72. Of the 10 analysts that have set a target price on the stock, the lowest price target stands at $7.00. This implies a current upside of 30.84% from current levels around $5.35. The stock is a short squeeze candidate, with a short float at 9.8% (equivalent to 9.36 days of average volume). It's been a rough couple of days for the stock, losing 12.31% over the last week.

3. AsiaInfo-Linkage,Inc. (NASDAQ:ASIA): Provides telecommunications software solutions and information technology (NYSE:IT) products and services to telecommunications carriers and other enterprises in the People's Republic of China. Market cap of $573.28M. RSI(14) at 38.56. Of the 17 analysts that have set a target price on the stock, the lowest price target stands at $10.00. This implies a current upside of 28.87% from current levels around $7.76. The stock is a short squeeze candidate, with a short float at 23.75% (equivalent to 9.62 days of average volume). The stock has performed poorly over the last month, losing 15.84%.

4. Spansion Inc. (NYSE:CODE): Engages in the design, development, manufacture, and sale of flash memory semiconductors worldwide. Market cap of $632.63M. RSI(14) at 33.97. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $13.00. This implies a current upside of 27.33% from current levels around $10.21. The stock is currently stuck in a downtrend, trading 16.5% below its SMA20, 21.06% below its SMA50, and 40.8% below its SMA200. The stock has performed poorly over the last month, losing 22.92%.

5. Marchex, Inc. (NASDAQ:MCHX): Operates as a call advertising and small business marketing company. Market cap of $273.13M. RSI(14) at 36.68. Of the 7 analysts that have set a target price on the stock, the lowest price target stands at $9.00. This implies a current upside of 26.94% from current levels around $7.09. The stock is a short squeeze candidate, with a short float at 12.85% (equivalent to 12.98 days of average volume). It's been a rough couple of days for the stock, losing 12.43% over the last week.

6. DigitalGlobe, Inc. (NYSE:DGI): Provides commercial earth imagery products and solutions. Market cap of $806.95M. RSI(14) at 36.45. Of the 11 analysts that have set a target price on the stock, the lowest price target stands at $22.00. This implies a current upside of 26.15% from current levels around $17.44. The stock is currently stuck in a downtrend, trading 11.61% below its SMA20, 14% below its SMA50, and 30.18% below its SMA200. The stock has performed poorly over the last month, losing 16.48%.

7. Bio-Reference Laboratories Inc. (NASDAQ:BRLI): Provides clinical laboratory testing services for the detection, diagnosis, evaluation, monitoring, and treatment of diseases primarily in the greater New York metropolitan area. Market cap of $473.19M. RSI(14) at 37.76. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $20.00. This implies a current upside of 25.0% from current levels around $16.00. The stock is a short squeeze candidate, with a short float at 24.64% (equivalent to 21.22 days of average volume). The stock has performed poorly over the last month, losing 12.69%.

8. GeoEye, Inc. (NASDAQ:GEOY): Provides earth imagery and imagery information products, as well as image processing services to the United States and foreign government defense and intelligence organizations, domestic federal and foreign civil agencies, and commercial customers. Market cap of $586.04M. RSI(14) at 32.08. Of the 7 analysts that have set a target price on the stock, the lowest price target stands at $33.00. This implies a current upside of 23.04% from current levels around $26.82. The stock is a short squeeze candidate, with a short float at 6.33% (equivalent to 5.78 days of average volume). It's been a rough couple of days for the stock, losing 7.85% over the last week.

9. Digi International Inc. (NASDAQ:DGII): Operates as a device networking company that develops products and technologies to connect and manage local or remote electronic devices over a network, via the Internet or via satellite. Market cap of $294.48M. RSI(14) at 38.39. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $14.00. This implies a current upside of 21.63% from current levels around $11.51. The stock is a short squeeze candidate, with a short float at 7.22% (equivalent to 11.88 days of average volume). It's been a rough couple of days for the stock, losing 5.49% over the last week.

10. Shutterfly, Inc. (NASDAQ:SFLY): Provides an Internet-based social expression and personal publishing service that enables consumers to share, print, and preserve their memories through the medium of photography. Market cap of $1.38B. RSI(14) at 33.55. Of the 9 analysts that have set a target price on the stock, the lowest price target stands at $50.00. This implies a current upside of 21.62% from current levels around $41.11. The stock is a short squeeze candidate, with a short float at 18.14% (equivalent to 6.77 days of average volume). The stock has performed poorly over the last month, losing 12.86%.

11. Ducommun Inc. (NYSE:DCO): Designs, engineers, and manufactures aerostructure, and electromechanical components and subassemblies. Market cap of $132.59M. RSI(14) at 32.68. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $16.00. This implies a current upside of 20.75% from current levels around $13.25. The stock is currently stuck in a downtrend, trading 10.23% below its SMA20, 17.98% below its SMA50, and 35.99% below its SMA200. The stock has performed poorly over the last month, losing 12.09%.

12. MEMC Electronic Materials Inc. (WFR): Engages in the development, manufacture, and sale of silicon wafers for the semiconductor industry worldwide. Market cap of $1.12B. RSI(14) at 35.94. Of the 20 analysts that have set a target price on the stock, the lowest price target stands at $6.00. This implies a current upside of 20.48% from current levels around $4.98. The stock is currently stuck in a downtrend, trading 16.73% below its SMA20, 20.04% below its SMA50, and 47.51% below its SMA200. It's been a rough couple of days for the stock, losing 16.03% over the last week.

13. Exelixis, Inc. (NASDAQ:EXEL): Engages in the discovery, development, and commercialization of small molecule drugs for the treatment of cancer, metabolic, and cardiovascular disorders. Market cap of $552.48M. RSI(14) at 35.29. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $5.00. This implies a current upside of 19.90% from current levels around $4.17. This is a risky stock that is significantly more volatile than the overall market (beta = 2.03). The stock is a short squeeze candidate, with a short float at 8.47% (equivalent to 6.13 days of average volume). It's been a rough couple of days for the stock, losing 7.79% over the last week.

14. Crocs, Inc. (NASDAQ:CROX): Engages in the design, development, manufacture, marketing, and distribution of footwear, apparel, and accessories for men, women, and children. Market cap of $1.57B. RSI(14) at 36.89. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $21.00. This implies a current upside of 19.86% from current levels around $17.52. The stock is currently stuck in a downtrend, trading 9.72% below its SMA20, 26.01% below its SMA50, and 21.73% below its SMA200. The stock has performed poorly over the last month, losing 34.16%.

*Target price data sourced from Thomson/First Call (via Yahoo Finance), all other data sourced from Finviz.

Source: 14 Oversold Tech Stocks Undervalued by Target Price