To update. I squished it a bit similar to the way manolis showed. I started on the legs of the spring. It took a few tries but it is now similar effort required to the way my shadow 2 came factory.
The group size is okay. If you are 100% sure it's the gun and not you, I would go ahead and drift the rear sight (it's not that hard) mine also shot left a few inches.
As for the elevation, it seems odd. Maybe a taller front sight is needed.