** Analysts at Morningstar say New Hope Corp NHC.AX and Whitehaven Coal WHC.AX are undervalued by 29% and 26%, respectively, driven by softer near-term coal prices
** Morningstar says thermal and metallurgical coal prices are sluggish, due to slower economic growth and energy demand, and subdued steelmaking in China, respectively
** The invesment research firm retains fair value estimate of A$9 for Whitehaven as higher metallurgical coal prices outweigh lower thermal coal prices, while New Hope's fair value estimate is cut by 4% to A$5.5 due to weak thermal coal prices
** With strong supply of coal, higher-cost producers have begun to cut or cease production - Morningstar
** Year to date, NHC shares were down 21.2%, while WHC's were up 5.2%
(Reporting by Keshav Singh Chundawat in Bengaluru)
((Keshav.singhchundawat@thomsonreuters.com))