Why are analysts saying Petrom stock has run out of steam?

The shares of oil company OMV Petrom (SNP) have in recent months got close to the value that analysts view as “accurate”, and a significant increase above current levels is unlikely, despite the rising first half figures.
KBC Securities analysts consider that one of the main risk factors for the trend of Petrom stock in the coming period is the state’s intention to sell a 9.8% stake in the company on the Stock Exchange, which could create an oversupply on the market, though OMV has voiced its interest in this stake.
Also, stalling production of hydrocarbons after 2010 is another factor that could hinder Petrom progress.
The company is also facing the risk of rising royalties paid to the Romanian state for oil production, starting 2013.
Moreover, Petrom’s plan to restructure the refining and marketing (R&M) segment, which partially paid off in the first half, is quite slow, analysts believe.
Petrom stock has risen by 35% since the start of the year, one of the highest increases on the Bucharest Stock Exchange. In the past year, SNP stock has gained 31%, way above other companies in the sector.