Groupon Inc. (GRPN) - Get Report has been one of the most volatile stocks in Barclays analyst Deepak Mathivanan's coverage, rising 30% over the past three weeks after falling 25% following its weak earnings release. 

"We think shares are likely to underperform until Groupon can demonstrate evidence of sustainable improvement in core unit economics and purchase frequency," Mathivanan wrote in a note Wednesday. 

The firm maintained its "underweight" rating and $3.40 price target on the company. The price target represents a 14% downside from the stock's previous closing price of $3.94. 

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