Bank of America Corp.’s full-year earnings estimate was cut almost in half by CLSA Ltd.’s Mike Mayo, who said reserves to cover a Department of Justice settlement may be too low.

Mayo reduced his 2014 estimate to 55 cents a share from $1 in a note to investors Wednesday and said the bank may have only $2.4 billion set aside to cover an estimated $8 billion U.S. accord. The CLSA analyst had questioned Bank of America’s managers earlier in the day during the company’s annual shareholders meeting in Charlotte, North Carolina, where BofA is based.

The report also cited “nebulous financial targets” and said it’s not clear that Chad Holliday is “up to the task” as chairman of the board because he lacks banking experience. Mayo reiterated a sell recommendation on the shares, which have fallen almost 5 percent this year.

Jerry Dubrowski, a spokesman for Bank of America, didn’t immediately respond to a phone call and e-mail seeking comment. U.S. prosecutors are seeking more than $13 billion from Bank of America Corp. to resolve federal and state investigations of the lender’s sale of bonds backed by home loans in the run-up to the 2008 financial crisis, people familiar with the matter said last month.