Aug 18 (Reuters) - Seymour Pierce upgraded British fashion chain Ted Baker to "buy" from "outperform," saying the company should benefit from a strong dollar, a relatively strong balance sheet and growth potential through new store openings.

www.TedBaker.com

The brokerage said Ted Baker's recent positive trading statement has been "overlooked," but underlying first-half profits to be announced in October should be good, although it will be hit by higher store-opening costs.

Ted Baker is a highly attractive and unique brand, which is still relatively under-developed, though it will not be immune to the economic slowdown, Seymour Pierce said.

Shares of Ted Baker were up 0.26 percent at 384.5 pence by 0842 GMT. (Reporting by Kumar Alagappan in Bangalore; Editing by Vinu Pilakkott)