I personally can't put City as favorites to win back 2 back UCL as this is something that rarely happens in this competition. City has a great team but also fights for EPL title which might be an important factor in UCL and Real Madrid is the best team that knows how to speculate games like this and won't be surprised to see Real qualifying further but on the same time I can't see them winning the trophy either.
I will stick with my theory that whoever eliminated Porto in the last years , ended up winning UCL so this year , Arsenal should be one.

Arsenal does have a chance of becoming champions and Manchester City is also the same, but you should know that these two Premier League representatives have quite strong opponents in the quarter-finals where Arsenal will face Bayern Munich and Manchester City will face Real Madrid. If the two representatives from the Premier League manage to beat their opponents in the quarter-finals, that's when we believe that they are very ready to win the UCL trophy. But don't underestimate Bayern Munich because they have also been very consistent in the Champions League this season where they have a great coach and their players are also very high quality. But for me of course I am still quite confident that Manchester City will be successful in gaining success this season because as long as Pep Guardiola is there I think they have a greater mentality in achieving their targets.
Apart from that, PSG cannot be underestimated, they managed to advance with their best performance by eliminating their opponents. Psg will face Barcelona and in this match we will see Luis Enrique face his former team where he coached Barcelona in the 2014 to 2017 season. For this reason, this match may be quite interesting because whoever makes it to the semifinals will of course have ambition to become champion. Psg is indeed targeting the champions league trophy and I hope they can succeed in doing it.
Considering how impressively consistent Arsenal have been since the start of the season, I don't think it'll be wrong to consider them as a strong contender for the UEFA Champions League title this season but I think there are three more four clubs that are still in the competition that I'll rather consider as favourites ahead of Arsenal and that's because I think the players at Arsenal doesn't have much experience in the competition.
Teams like Real Madrid, Manchester City, Bayern Munich and Paris Saint Germaine I think possess stronger quality players that'll help them win the UEFA Champions League title ahead of Arsenal. Again Arsenal are in strong contention to win the English Premier League title this season which I think will make their players to suffer fatigue as the season gets to the final weeks
Although Manchester City, Real Madrid are opponents of each other, we definitely consider these two teams as strong rivals in the Champions League. Along with Manchester City and Real Madrid, Bayern Munich are quite strong in the Champions League tournament this season and we can list Arsenal as the favorites for the Champions League competition. Arsenal have been consistent since the start of the season but they need to be a bit more consistent as the upcoming matches are definitely tough and if Real Madrid can't perform in line with Manchester City and Bayern Munich in the upcoming matches then Bayern Munich won't do well. If Manchester City and Real Madrid qualify for the semi-finals, I would like to see Arsenal and Bayern Munich qualify for the semi-finals. Because if all the strong teams lose in the quarter final then the final match will not be good at all.