Atletico Madrid has a goal to win the Champions League. They have won the La Liga once before, and in the Champions League they have always stopped short of success. Atlético is not strong enough to play on two fronts and they have to choose.
I agree that they have added more quality and certainly more depth to their squad and there are 2 of my countryman there too, but I don't see them as favorites to win the Champions league. If they get some lucky draw and some circumstances go in their favor, like no injuries they do have the potential though.