NEW YORK (TheStreet) -- Shares of Wells Fargo (WFC) - Get Report were sliding in late-morning trading on Friday despite Evercore analysts saying they view the stock's pullback as an "attractive entry point."
Wells Fargo CEO John Stumpf appeared before the House Financial Services Committee yesterday in a hearing that was related to the bank's ongoing illegal account openings issue.
Evercore noted that there weren't many new developments at the hearing, but there were several interesting takeaways related to the expanded scope of the review among other things, Barron's reports.
Stumpf was also grilled about the company's business model and how executives will be impacted by the ongoing investigation into its sales practices.
Although Wells Fargo is likely to face continued scrutiny, Evercore said it believes the company can handle the financial risk.
"Despite the ongoing headline noise (which may persist and represent a near term overhang), we believe the financial risk is more than manageable, and with the stock trading at 11.0x 2017 EPS...the stock presents an attractive entry point from a long term perspective in our view," the firm said in an analyst note cited by Barron's.
Additionally, Warren Buffett confirmed to CNBC's Becky Quick late yesterday that he spoke to Stumpf "for about five minutes" telling him that he thought the problem was bigger than Stumpf thought at this point, according to Bloomberg.
Buffett's Omaha-based Berkshire Hathaway (BRK.B) owns the largest stake in Wells Fargo with about 9.51% of shares outstanding.
(Wells Fargo is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of Cramer's holdings with a free trial.)
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
The team rates Wells Fargo as a Buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and attractive valuation levels. The team believes its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: WFC