318 Engine stumble

If I readjust the points.
Will I need to retime the engine?

Yes. Readjust to 28-32*, then readjust the timing. My guess will be that it will want more timing than 12* initial. Mess around with it. Give it 16, then 18.......I've already said this once. I'm startin to get blue. The engine will pretty much tell you how much initial timing it wants. As long as the idle goes up as you advance, it wants more. But you will have to find a happy medium where it does not spark knock and where it does not lug the starter cranking when warmed up. For example, I have my 1975 Ford F250 with a 351M sitting at 20* initial with a total of 34* in by about 3500. Yours is lighter, so it can stand the total to be in sooner.