Ernst—who had a screaming buy on the stock and a $900 price target not too long ago—said he's reducing projections to $700 to reflect "what we see as a new normal for growth and margins."
But his new target would still send Apple stock soaring more than 60 percent higher from here, and back to record high levels not seen since September of last year.
Apple's slump so far in 2013 put it as a four seed in our "Squawk Box Money Madness" tournament, which kicked-off back on March 18 with the iPhone maker beating Netflix and then General Electric enroute our "Favored Four" round. It now faces another four seed in Bank of America, which beat Citigroup and Intel to get here (click here for our bracket). Vote on our Facebook page to send Apple or BofA through to the "Squawk Stock Championship" matchup.
On Bank of America, Sterne Agee Financial Analyst Todd Hagerman told CNBC his price target on the stock is $13 a share, which would be an increase of nearly 7 percent from where it's trading now.
Despite its troubles, the device maker has had a good year—up 27 percent—which made it a one seed on its side of the bracket. BlackBerry will go up against four seed Facebook on Thursday.