The Globe and Mail reports in its Friday edition that TD Securities analyst Mario Mendonca downgraded Bank of Nova Scotia ($68.92) to "hold" from "buy," citing concerns related to emerging markets -- especially slowing economic growth in Latin America, where it has a large presence. The Globe's Jody White and Darcy Keith write in the Eye On Equities column that Mr. Mendonca cut his share target to $75 from $77. Mr. Mendonca says in a research note: "Over the last five years, the bank's better earnings stability and momentum have earned Scotia an average premium (against peers) of 4-5 per cent. On our estimates and consensus, the stock trades relatively in line with the group. Historically, the bank's stronger growth and premium valuation has been driven by consistent earnings and a strong international segment. Although we believe that [Scotiabank's] excess capital and the bank's greater scope of acquisition opportunities ... could one day warrant a premium, the recent weakness in Latin America as evidenced by equity market performance, rate reductions, deteriorating currencies, and slower economic growth support setting our target price on Scotia based on target P/E no higher than the group P/E."