** Brokerage Raymond James updates its ratings and PTs of industrial REITs EastGroup Properties EGP.N and Prologis PLD.N

** Brokerage upgrades EGP to "strong buy" from "outperform"

** Says co's net operating income growth will decelerate more slowly vs. peers, helped by its smaller, multi-tenant industrial buildings with less supply pressure, more resilient demand than larger distribution facilities

** Also says co's smaller size makes any external growth more impactful; raises PT by $15 to $200

** Brokerage downgrades PLD to "outperform" from "strong buy"

** Says PLD's risk-to-reward ratio is less compelling but that brokerage remains constructive due to co's attractive valuation and solid adjusted funds from operations growth through 2026

** Expects long-term upside potential from its unique strategic capital platform; lowers PT by $5 to $125

** Up to Tuesday's close, EGP and PLD stocks have fallen 7.2% and 15.1% respectively, YTD

(Reporting by Neil J Kanatt in Bengaluru)

((Neil.JKanatt@thomsonreuters.com;))