Interim results from department store group Liberty prompted the brokerage firm Seymour Pierce to re-iterate its ‘Hold’ recommendation on hopes of significant potential in the shares.

Although the broker maintains its view that if management can fully leverage the company’s brand then there is a bright future for the company, however it also acknowledges the downside in the short term. This includes the weakening trading environment, the high costs of developing the brand, and the company’s growing debt levels.

Against this backdrop Seymour Pierce increased its 2008/9 pre-tax loss forecast from £4.5 million to £7.4 million and from £4 million to £5.5 million for the following year. But it also believes that with the shares tightly held there is a cushion to any downside pressure on the share price, which currently stands at 275p.