UPDATE 1-RESEARCH ALERT-UBS raises aluminum price forecasts

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March 27 (Reuters) - UBS raised its aluminum price forecasts for 2008, 2009 and 2010, citing power challenges in key producer regions, including South Africa and China.

The brokerage said energy cost pressures and energy availability could ultimately constrain supply growth within the aluminum market and result in higher pricing.

UBS raised aluminum price forecasts for 2008 to $1.45 a pound from $1.24, and 2009 forecasts to $1.60 a pound from $1.30.

It raised its forecasts for 2010 to $2.00 a pound from $1.40.

Based on the higher aluminum price forecast, it raised its price target for Alcoa Inc (AA.N) to $52 from $41. It has a "buy" rating on the stock.

Alcoa shares closed at $36.03 Wednesday on New York Stock Exchange. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Jarshad Kakkrakandy)