Loop Capital upgraded Aspen Technology (AZPN, Financials) to a buy rating, citing expectations of a higher takeover bid from Emerson Electric amid pressure from activist investor Elliott Investment Management.

With a more than $1.5 billion Emerson holding, Elliott has claimed that the $265-per-share offer undervalues Aspen Tech and is advocating a larger proposal. Mark Schappel, a Loop Capital analyst, said Elliott is probably going to persuade enough minority investors Aspen Tech is worth far more than Emerson's current offer.

Elliott has said it shows opposition to the merger by not intending to submit its shares at the present offer price. Emerson, meanwhile, has underlined that Aspen Tech's independent special committee has a greater understanding of the company's long-term future than short-term arbitrage investors, so its $265-per-share deal is its best and last offer.

Citing Aspen Tech's scarcity value and the conviction that the current market price does not fairly represent its value, Loop Capital boosted its price objective for the business to $315. Aspen Tech shares dropped 3% on Monday after Emerson's speech, despite the upgrade.

Aspen Tech shares fell 2.8% to $266.89 as of 1:50 p.m. ET on Monday, following Emerson's statement.