Boeing's (BA) Q2 free cash flow was a "positive surprise" as higher deliveries and improved working capital lowered cash usage, BofA Securities said Thursday in a report.

The firm expects Boeing to swing to positive free cash flow in Q4 after another cash outflow in Q3.

"Boeing reported one of its cleanest quarters in recent years, beating EPS and free cash flow estimates, as well as laying out a realistic view for what's ahead," the report said.

The company continues to stabilize production and improve the operational performance of its commercial airplanes segment, citing recent output milestones, BofA said.

"We expect further aircraft orders to come as the Trump administration continues working through deals globally," the report said.

BofA raised its price target on Boeing stock to $270 from $260 and maintained its buy rating.

Boeing shares fell 1.4% in recent Thursday trading.

Price: 222.63, Change: -3.21, Percent Change: -1.42