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Up almost 28% since the start of the year, General Motors (NYSE: GM) stock has significantly outpaced the S&P 500 index's 7.1% gain. And the stock's run isn't over yet, at least according to Bernstein analyst Daniel Roeska.

Initiating coverage on GM stock, Roeska assigned a $55 price target and an outperform rating. Based on its current price of $45.94, Roeska's price target implies an upside of nearly 20% for GM stock.

Generating strong cash flow will help fuel GM stock's rise

Roeska addresses several points in his initial report on GM stock, according to The Fly. Most notably, he asserts that GM is poised to deliver strong results throughout 2024, providing a catalyst for the stock to rise. Additionally, Roeska is impressed with GM's achievement in generating stronger cash flow, and he expects the company to distribute $4.5 billion to shareholders in 2024.

GM reported strong first-quarter 2024 financial results this week. With regard to cash flow, GM increased operational cash flow from its automotive segment to $3.6 billion in Q1 2024 from $2.2 billion during the same period last year. With respect to adjusted automotive segment free cash flow, GM reported $1.1 billion, representing a sharp turnaround from the negative $132 million that it reported in Q1 2023.

It looks like a good time to ride with GM

While Roeska's price target for GM stock may be encouraging, it's essential for investors to recognize that Roeska didn't provide a time frame for his estimate (the general rule is roughly 12 months). But analysts frequently apply shorter time horizons for their price targets, so it's best to be a little circumspect about Roeska's price target.

Nonetheless, GM stock seems attractive right now after the company's strong start to the year and management's auspicious outlook for the rest of 2024, including an upwardly revised 2024 adjusted automotive free-cash-flow forecast of $8.5 billion to $10.5 billion from initial guidance of $8 billion to $10 billion. Plus, shares are trading at an inexpensive 5.5 times trailing earnings.

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool recommends General Motors and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.