As reported earlier, Needham analyst N. Quinn Bolton downgraded Inphi (IPHI) to Buy from Strong Buy while maintaining his $35 price target. Bolton says the inventory purge in China has finally produced a bottom in the coherent LH/metro market, while the Pam-4 Digital Signal Processor revenue appears poised to top prior forecasts. However, the analyst is also more cautious on the "lumpy COLORZ" Silicon photonics technology mitigating the upside, along with the ban on ZTE (ZTCOY) imports stunning the growth of the company's other high-margin products.