yes it could need a rebuild, the oil seals could be letting in air when at top rpm. i had this problem,when i hit around 12,000 rpm it would die i would back off the throttle and it would pick up again. it turned out that whoever rebuilt last time put the gear side oil seal in the wrong way round putting the open side towards the crank,the spring had come off the seal and was loose between the seal and the main bearing. it was letting in to much air so running way to lean at the top revs and on the verge of seizing every time i hit high revs. so a rebuild may be a good thing,it may save you buying a new motor.
hope it helps mark
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