NEW YORK (TheStreet) --Investment banks who underwrote Groupon's (GRPN) November IPO issued mixed reviews of the daily deals company.

Of the banks which initiated coverage of Groupon on Wednesday, seven gave it a neutral rating while four started it off with a buy.

Groupon shares have been volatile since the company's IPO. While the stock spiked 40% to $28 after its initial debut, shares reached as low as $14.85 last month.

Groupon skeptics cited the company's still unproven business model, potential subscriber growth slowdown and mounting competition as reasons for their concern.

"Waiting for a better deal," was the title of underwriter Deutsche Bank's research report on Groupon.

Lead underwriter, Morgan Stanley, initiated with equal weight, writing, "we would wait for a better entry point to build a position."

Still, some analysts remain bullish on Groupon.

Wells Fargo, which gave the company an outperform rating, said Groupon represents "an exciting, long-term investment opportunity with multiple avenues for continued rapid growth." The bank countered critics who say the daily deal market is overly saturated because it's relatively easy to enter, adding, " critics overlook how high the barriers are to actual success."

Barclays, which initiated with an overweight rating, said Groupon has "cracked the code...for how to best leverage the Internet to drive local commerce."

Shares of Groupon were trading down 7.3% to $21.63 in late morning trading on Wednesday.

--Written by Olivia Oran in New York.

>To follow the writer on Twitter, go to http://twitter.com/Ozoran.

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