Xtract One Technologies is scaling significantly, this analyst says

Ventum Capital Markets analyst Amr Ezzat reiterated his “Buy” rating and C$0.80 target on Xtract One Technologies (Xtract One Technologies Stock Quote, Chart, News, Analysts, Financials TSXV:XTRA) in an August 5 update, calling the company’s latest education contract a “step-change in scale.” The target implies a roughly 111% return from current levels.

Xtract One Technologies, formerly Patriot One Technologies, develops weapon and threat detection systems for venues like stadiums, schools, casinos, offices and healthcare facilities. Founded in 2016, the company is based in Toronto and operates in North America and internationally.

Ezzat said the agreement with Florida’s Volusia County Schools, its largest education deal to date, is also among the biggest single orders Xtract One has announced in any vertical. The district plans to deploy 48 One Gateway units across all high schools in Phase 1 and middle schools in Phase 2, with installations beginning in August 2025.

“This is a structural departure from the Company’s typical land and expand pattern, where customers start with 1 to 3 units and scale over time,” Ezzat said. “In this case, the district is going straight to full coverage, signalling strong conviction after a year-long, head-to-head evaluation of competing solutions. While Xtract does not typically disclose contract sizes, we suspect the scale here was significant enough to warrant an announcement, and based on scope and higher One Gateway ASPs, we believe the value is material and likely on par (or close to) the $6.7M in One Gateway orders disclosed in June.”

Ezzat said the Volusia County Schools contract adds to Xtract One’s existing backlog and reflects growing momentum in the education sector. He noted the deal helps further diversify the company’s pipeline beyond its core sports and entertainment markets.

The company’s stock closed August 1 at C$0.345, opened Tuesday at C$0.37, and ended the day at C$0.38, a gain of close to 10%.

“We believe today’s stock move is modest relative to the commercial significance of the deal, as well as the flurry of recent orders the Company received,” he said. “We continue to view Xtract as one of the most compelling asymmetric setups in Canadian small-cap tech today.”

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