Wells Fargo analyst Ed Caso downgraded Perspecta (PRSP) to Equal Weight from Overweight with a price target of $26, down from $31. The company was unsuccessful in its defense of the large "NGEN" contract with the U.S. Navy, which represented 15%-20% of revenue, Caso tells investors in a research note. The contract went to Leidos (LDOS). Historically, incumbents have the edge, and Perspecta management had been expressing comfort in recent months, says the analyst. He assumes Perspecta will protest the decision, which will have the effect of extending its revenue well into 2020. However, Caso reduced his estimates to be more conservative and to provide investors a "better worst case scenario to value the shares."