BUZZ-Luxury: China drivers healthy enough for long-term growth - Berenberg

** Berenberg says that the significant balance-sheet firepower and the diversified businesses of the few large players in the luxury sector are something investors could still become excited about in 2019

** Broker chooses LVMH and Kering as top picks

** Cuts Prada and Burberry (-2.5%) to "hold" from "buy" and Tod's (-5%) to "sell" from "hold" as turnaround stories fall out of favour

** "Compared to the broader market, the sector is trading ahead of its historical average premium, which leaves little room for error" adds Berenberg

** Broker says healthier drivers in China such as middle class and millennial consumers allow for long-term sustainable mid-single-digit growth

** Berenberg adds that, thanks to those drivers, the sector is better positioned structurally than in the post-2012 crash in Chinese luxury consumption