Burberry Share News (BRBY)

(Sharecast News) - Most luxury fashion brands are doing "surprisingly well", said HSBC, which is at stark odds with the market's fears for the sector.HSBC said recent trading updates and outlook statements indicate that the luxury sector is in line for a "soft landing rater than the steep declines that many investors seem to fear (or hope for when they are short)".Investors are fearful that luxury demand will take a hit from softening Chinese consumer confidence around the trade battle with the US.But HSBC analysts believe that underlying growth is supported by a "younger Chinese selfie generation" that is wealthy due to the one child policy and has a propensity to buy brands that is not lower than the previous generation, with the number of luxury consumers "expanding quickly".Even with a handicap of an increased volatility in its model and trimming some estimates, resulting in all sector target prices being revised down, there is still upside to be found.As a result British fashion retailer Burberry was upgraded to 'hold' from 'reduce' and champagne and fashion group LVMH, skiwear maker Moncler and watch maker Swatch were all upped to 'buy' from 'hold'.Only Ferragamo was downgraded, with a cut to 'reduce' from 'hold'.