RESEARCH ALERT-UBS cuts Kaiser Aluminum to neutral

July 24 (Reuters) - UBS downgraded Kaiser Aluminum Corp (KALU) to "neutral" from "buy" and reduced price target by $1, citing sustained aerospace weakness and excess aluminum plate supply. "Recent reported delays in aircraft build rates and evidence of sustained air traffic weakness merit a more cautious view toward KALU's key end market," UBS analyst Timna Tanners said in a research note to clients. Tanners also cited Kaiser Aluminum's top distributor Reliance Steel & Aluminum Co's recent announcement that general aluminum plate prices are falling amid excess supply. "Heat-treated plate for aerospace/general engineering are key KALU high-margin products," Tanners said. The company's cost-saving initiatives and lack of debt could be incremental positives, Tanners said, but she still still sees headwinds from soft demand and protracted aerospace weakness cited by peers that also supply the industry. Tanners also reduced the Foothills Ranch, California-based company's price target to $39 from $40. Shares of the company were trading down 5 percent at $34.50 Friday morning on Nasdaq. (Reporting by Shradhha Sharma in Bangalore; Editing by Anil D'Silva)