Taking into account that Manchester City is also having trouble here and there in their games, I think yes there are a few teams that have a realistic chance to win the Champions League trophy while leaving aside some other teams that might be in for a surprise like we have seen with Inter Milan. But I still think that Manchester City has left a lot of potential in the tank. I am not sure about Bayern Munich, but when De Bruyne returns, I think they will be much stronger than now.
Manchester City's performance is a bit slow right now, it's true. They have not played well in the last two matches in the Premier League and have been defeated. However, they continued their dominance in the Champions League. They won both the matches and played very well. And it is easy to understand that Guardiola's main target is the Champions League. Guardiola will try his best to win the Champions League. At the same time, I consider the Bayern Munich team as a favorite because their coach Thomas Tuchel is quite experienced. And Munich's squad is also strong this season. Munich also have the potential to be champions.
Competition in the Champions League is not that simple, even though we think some teams are favorites we don't know what happens to them. Maybe many here look at their performances, including me, but when on the pitch other factors besides the game are also very influential for the results that will be obtained by the competing teams. Luck, mentality are two things that will be their shadows in every match, even though they may meet weaker teams.
Manchester City are the favorites, Real Madrid and Bayern Munich are on my favorites list as well, not to mention Real Madrid's main rivals in La Liga, Barcelona.