EYE ON EQUITIES / / STOCKS THAT SHOULD BE ON YOUR RADAR SCREEN

Bank of Nova Scotia (BNS - TSX)

Wednesday's close $51.25, unchanged

Bank of Nova Scotia's third-quarter results reflect weak international earnings, and sluggish loan growth and a stronger Canadian dollar will continue to hurt profits in this division, said Canaccord Genuity analyst Mario Mendonca.

Downside: Mr. Mendonca reiterated his "hold" rating, but lowered his price target to $56 from $57.

ISHARES S&P/TSX CAPPED ENERGY (XEG - TSX)

Wednesday's close $17.43, up 32¢

Dundee Capital Markets analyst Martin Roberge upgraded the integrated oil and gas group from a "market weight" to an "overweight" stance.

Upside: The upgrade reflects improved gasoline consumption, reasonable crack spreads, depleted finished gasoline inventories and cheap valuations, Mr. Roberge said.

Telus Corp. (T - TSX)

Wednesday's close $43.91, down 9¢

Telus Corp. shares stand out as by far the best choice, compared with BCE Inc. and Rogers Communications Inc., TD Securities analyst Vince Valentini said. "We expect Telus to post the highest EBITDA growth and the biggest positive surprises over the next year, and it has attractive geographic and sector exposure, and it has way more takeover potential."

Upside: Mr. Valentini raised his price target for Telus to $50 from $48.

Calloway REIT (CWT.UN - TSX)

Wednesday's close $23, down 11¢

Calloway REIT's decision to acquire two Wal-Mart-anchored unenclosed shopping centres in Laval, Que., and Sarnia, Ont., for a total $131-million will be positive, said National Bank Financial analyst Heather Kirk.

Upside: Ms. Kirk raised her target price to $24.25 from $23 and maintained an "outperform" rating.

Constellation Energy Group Inc. (CEG - NYSE)

Wednesday's close $30.57 U.S., up $1.24

Constellation Energy Group Inc. earnings will be hit by lower fossil-fuel power hedges and higher hedged coal prices, said Citigroup Global Markets analyst Brian Chin.

Downside: Mr. Chin decreased his 12-month target price to $33 (U.S.) from $34 and maintained a "hold" rating.