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3 ASX growth shares to watch closely in June

ASX growth shares have fallen out of favour recently as investors continue to rotate into value sectors.

Here are three that could be worth watching closely in June.

EML Payments

Shares in digital payments company EML Payments Ltd (ASX: EML) are still down 36% after one of its subsidiaries was notified by the Central Bank of Ireland (CBI) about a potential breach of anti-money laundering and counter-terrorism regulations.

The subsidiary in question is Irish-based PFS Card Services (PCSIL), which represents around 27% of EML’s total revenue.

The CBI invited PCSIL to provide it with submissions regarding the concerns, which it planned to do by 27 May. However, no more information has since been provided to the ASX, so shares still seem to be in a state of limbo at the moment.

Depending on the outcome, the current EML share price could be a good opportunity. Given the uncertainty, I’ll be waiting on the sidelines for now.

Smartpay

Another ASX growth share that’s pulled back recently is Smartpay Holdings Ltd (ASX: SMP), a New Zealand based company that distributes EFTPOS terminals.

Source: Rask Media SMP 1-year share price chat

Smartpay just released its full-year results, which you can read about here.

One of the reasons I like Smartpay is due to some macroeconomic trends that could work to its advantage.

An example of this would be the increased use of credit and debit cards as consumers shift away from cash-based payments.

As Smartpay generates a small percentage of the transaction value processed through its terminals, this will ideally act as a nice tailwind on revenue.

Redbubble

The sentiment around online marketplace Redbubble Ltd (ASX: RBL) has been undeniably low recently.

Redbubble’s market valuation has tumbled close to 40% since releasing its Q3 trading update, which revealed short-term profit will be sacrificed for reinvestment to continue growing the business in future years.

Some investors have presumably panicked at the thought of Redbubble being a once-off beneficiary of COVID-19. While of course this can’t be ruled out, I think the broader growing thematic of e-commerce and print on demand could still work to its advantage, even in a post-COVID trading environment.

Customer acquisition costs (CAC) are probably my biggest concern moving forward, which have recently increased partly due to how saturated the online space is with other e-commerce platforms.

For more reading on Redbubble shares, click here to read: Redbubble (ASX: RBL) shares popped yesterday: Here’s my take.

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Are you stuck wondering where to invest right now? Have you got cash 'sitting on the sidelines'? Are you looking for dividend income AND growth but don't know where to start? Rask's expert ASX analyst team has just released a full report, detailing where we'd invest $10,000 right now.

Not only are we offering these 11 investment ideas completely FREE, we've also released an in-depth podcast to go with the report!

So, whether you have $2,000 or $50,000, our brand new analyst report could help transform your watchlist. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW.

At the time of publishing, Patrick owns shares in Redbubble Limited.

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