Nomura and Edelweiss reiterated their bullishness on the shares of Future Retail, after the company announced the acquisition of K Raheja Group\u2019s HyperCity for Rs 655 crore. Yesterday, Future Retail said that it has executed share purchase agreement (SPA) with Shoppers Stop for its acquisition of HyperCity Retail in stock-and-cash deal. Edelweiss expects the deal to be a win-win for both the parties. \u201cFuture Retail will gain access to prime locations in metros (an issue due to slow mall development; incrementally negative for D-Mart) and HyperCity\u2019s private labels,\u201d the research firm observed in a report. Edelweiss has a buy call on the shares with a target price of Rs 619. Future Retail shares were trading at Rs 542.7, up by more than 2.2% on Tuesday morning. HyperCity operates 19 stores over a 1.34 million square feet area, according to an investor presentation by Shoppers Stop for the quarter ended June 2017. The company, which hasn\u2019t posted even a rupee of profit so far,and made losses worth Rs 84.73 crore in FY16-17 on revenues of Rs1,154.57 crore, as per its annual report data. Edelweiss says that Future Retail can turn things around for HyperCity. \u201cThe company (Future Retail) can easily turn HyperCity (likely to be rebranded Big Bazaar NXT) profitable in the first year (-1.5% EBITDA margin in FY17) itself by enhancing apparel share (~35% gross margin), pruning headquarter cost and boosting synergy benefits,\u201d says the report. Nomura too says that the HyperCity's acquisition is a step in the right direction. \u201cWe raise revenue estimates by 2% and 6% for FY18 and FY19,\u201d Nomura said in its report. Nomura has a buy call on the stock with a target price of Rs 619, implying an upside of more than 14% from the current market prices. The move \u00a0may also help HyperCity to reduce the burgeoning Rs 400 crore debt pile, as against an equity of Rs 11.45 crore, as the company seeks to transfer a part of debt to Future Group.\u00a0According to stock exchange finings, the stock-and-cash deal will be completed in three to five months. Future Retail will allot more than 9.3 million shares to HyperCity Retail\u2019s shareholders at Rs 535 per share on a preferential basis, accounting for Rs 500 crore. The remaining Rs 155 crore will be paid in cash, according to Future Retail\u2019s exchange filing.