Hughes has been impressed with Liverpool, who are one of a handful of clubs to have won their first six competitive fixtures in Europe's major leagues.
Only Barcelona, Bayern Munich and Juventus have started the season as well as Jurgen Klopp's men, who have racked up impressive victories against PSG and away at Tottenham.
Despite their impressive record, former Manchester City manager Mark Hughes believes that his team is capable of beating them.
"It is a game that is going to test us clearly because the team we are facing looks on top of their form, with individuals and the collective functioning really well," the Southampton manager told the media at a press conference.
"But we will go there with the intentions of causing them problems and maybe taking chances when we are presented with them, because in most games we are creating opportunities, that has not really been a problem for us.
"You would like to think if we can remain in the game and have a good platform, that will enable us to create chances and take chances if they come around."
Hughes continued: "Liverpool are in outstanding form at the moment and if it was a great performance in Europe.
'It's going to be a big test for us, we understand that - but we are on a decent run in terms of confidence.
Southampton are hoping to bounce back from throwing a two goal lead away at home, as they drew 2-2 to Brighton and Hove Albion.
"Yes, Monday night was a disappointment, but it does not affect us confidence-wise.
"If we had been dominated in the game and poor for long periods, which was not the case, we would have been more concerned going up against an in-form Liverpool team."
Southampton travel to Anfield for the fixture.