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Do you like to search for stocks that may be trading below their fair value? For ideas, we ran a screen you might be interested in.

One idea is to use analyst target price as a proxy for fair value. Although target prices are known to have an upward bias, we screened the tech sector for stocks trading well under even their lowest (most pessimistic) analyst target prices. This may indicate that these stocks are undervalued.

We only included companies with at least 5 analyst ratings. We then took the lowest rating and compared it with current price.

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 starting point for your own analysis.

1. CEVA Inc. (NASDAQ:CEVA): Engages in designing and licensing silicon intellectual property for the handsets, portable multimedia, and consumer electronics markets. Of the 9 analysts that have set a target price on the stock, the lowest price target stands at $32.00. This implies a current upside of 24.42% from current levels around $25.72.

2. EarthLink Inc. (NASDAQ:ELNK): Provides communications services to individual and business customers in the United States. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $10.00. This implies a current upside of 33.87% from current levels around $7.47.

3. hiSoft Technology International Ltd. (HSFT): Provides outsourced information technology and research and development services in North America, Europe, and Asia. Of the 9 analysts that have set a target price on the stock, the lowest price target stands at $14.00. This implies a current upside of 15.89% from current levels around $12.08.

4. ICG Group, Inc. (ICGE): A private equity and venture capital firm specializing in patient capital, growth capital, acquisitions, and mid and late venture investments in public and private companies. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $12.00. This implies a current upside of 33.93% from current levels around $8.96.

5. Isoftstone Holdings Limited (NYSE:ISS): Provides various information technology (NYSE:IT) services and solutions in the Greater China and internationally. 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 28.33% from current levels around $10.13.

6. Keynote Systems Inc. (NASDAQ:KEYN): Provides Internet and mobile cloud monitoring solutions worldwide. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $23.50. This implies a current upside of 16.45% from current levels around $20.18.

7. LogMeIn, Inc. (NASDAQ:LOGM): Provides on-demand, remote-connectivity solutions to small and medium-sized businesses, information technology service providers, and consumers in the United States and internationally. Of the 8 analysts that have set a target price on the stock, the lowest price target stands at $45.00. This implies a current upside of 18.36% from current levels around $38.02.

8. NICE Systems Ltd. (NASDAQ:NICE): Provides intent-based software and hardware solutions to organizations in enterprise, financial crime, and security sectors. Of the 9 analysts that have set a target price on the stock, the lowest price target stands at $41.00. This implies a current upside of 17.71% from current levels around $34.83.

9. Qihoo 360 Technology Co. Ltd. A (NYSE:QIHU): Provides Internet and mobile security products in the People's Republic of China. Of the 8 analysts that have set a target price on the stock, the lowest price target stands at $25.00. This implies a current upside of 26.77% from current levels around $19.72.

10. Silicon Image, Inc. (NASDAQ:SIMG): Engages in the design, development, and implementation of semiconductors and intellectual property solutions for the storage, distribution, and presentation of high-definition content in home and mobile environments worldwide. Of the 5 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.

11. Tele Norte Leste Participacoes S.A. (NYSE:TNE): Provides telecommunication services primarily in Brazil. Of the 7 analysts that have set a target price on the stock, the lowest price target stands at $12.88. This implies a current upside of 25.90% from current levels around $10.23.

12. Monotype Imaging Holdings Inc. (NASDAQ:TYPE): Provides text imaging solutions worldwide. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $17.00. This implies a current upside of 15.80% from current levels around $14.68.

*Short data sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: 12 Tech Stocks Undervalued By Target Price