UPDATE: Oppenheimer Downgrades Boeing On Expected Drop-Off in Contribution from Major Programs Down the Road

In a report published Wednesday, Oppenheimer analyst Yair Reiner downgraded Boeing

from an Outperform rating to a Perform rating and removed the $140 price target. In the report, Oppenheimer says "We're downgrading Boeing to Perform from Outperform and removing our $140 PT, which has been substantially achieved. While we still see Boeing's FCF improving over the next two years, we believe investors are overlooking how a convergence of factors are aligning to make 2015 a medium-term peak. Yes, 787 investment should (should) top out in 2015, but the call on cash is likely to be quickly replaced by investments in the 737MAX and 777x. On the P&L, meanwhile, 2016 looks to bring a material drop-off in contribution from several key cash cow programs, including the 777, C-17, F-18, and V-22. Boeing appears compelling at 12.8x FY15 FCF, a little less so at 14.0x FY16." Boeing closed on Tuesday at $136.98.