This small Canadian security stock is a buy, analyst says

Ventum Capital Markets analyst Amr Ezzat maintained a “Buy” rating and C$1.00 target price for Xtract One Technologies (Xtract One Technologies Stock Quote, Chart, News, Analysts, Financials TSXV:XTRA) in a Sept. 8 corporate update, pointing to growing traction in the U.S. education sector as a meaningful new growth driver.

“We continue to view Xtract as one of the most compelling asymmetric setups in Canadian small-cap tech today,” he said.

The company announced a new K–12 contract with Delmar School District in Delaware, adding to recent deployments in Florida, Mississippi, Virginia, and Pennsylvania.

“While not a game-changer on its own, this win is strategically important,” Ezzat said. “It marks roughly half a dozen school contracts since late last year, a stark contrast to the company’s limited presence in education previously.”

Toronto-based Xtract One, formerly Patriot One Technologies, develops AI-driven weapons and threat detection systems for venues such as schools, stadiums, casinos, healthcare facilities and offices. Its Gateway platform is designed to screen backpacks, laptops and other items without divestiture, offering what Mr. Ezzat called a “critical differentiator” in sensitive environments like schools.

Ezzat said momentum is building quickly, with Gateway now being trialed at new districts nearly every week.

“School safety remains a priority across the U.S.,” he added. “We expect education to evolve from a secondary use case into a major contributor to long-term growth.”

Ezzat said the company’s products are gaining visibility amid a renewed national conversation around campus security. Combined with referenceable wins and a growing sales pipeline, he argued the setup for Xtract One remains compelling.

Peter Evans, CEO of Xtract One, said the Delmar School District’s Gateway deployment, along with other recent school awards, represents further momentum with Gateway since its official launch.

“We’re seeing increased demand across high-throughput environments with medium volumes of personal belongings, like educational institutions, because Gateway solves a real-world challenge, keeping kids and staff safe without sacrificing their sense of privacy or creating bottlenecks that add stress to daily routines,” he said. “We are pleased and excited by the pace of growth with Gateway across the education space, including having it showcased and tested at schools nearly every week. Given this pace and increasing interest by school boards across America, we are optimistic about the outlook for Gateway going forward.”

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