The north German side have lost their last three games in a row, conceding 10 goals in the process to slip out of the running for a place in Europe next season and worryingly close to the relegation zone.
They beat Hannover and Stuttgart before that streak, though, and Favre is paying more intention to those results than Bremen's more recent woes.
"Bremen have a few problems at the moment, but they are still a team with great potential," he told reporters.
"They have very creative and dangerous players up front. I saw their 4-1 win over Stuttgart and they were really strong then."
Favre has enough strong players among his own ranks, few more so than Amin Younes, who has emerged in recent weeks as a one of the hottest prospects in German football.
However, Favre is keen to keep the pressure off the young midfielder and ensure expectations are not too high.
"Let's not forget he is only 19 years old," he added. "He has only played two games for us and he knows he has to learn step by step."
Favre's counterpart Thomas Schaaf has seen his players drop like flies this week, leaving him unable to decide upon his starting XI until the last minute.
"I've got to wait and see what kind of a squad I have available," he said after losing both Raphael Wolf and Kevin De Bruyne to knee injuries.
Schaaf is also without Sebastian Prodl and Sokratis, who are both suspended.