I really hope that some Italian team will reach the final this season too, even if i honestly think it will be more difficult.
Atalanta faces PSG, i think they're done for before they even start.
While Napoli faces a strong Manchester City, it will be very tough for the Italian teams.
Manchester City is not that strong based on their performance in their last three matches, every team has the strength to fight them this season, I expected all of their poor performances to end last season, but they have continued from where they stopped. Napoli has a chance to beat Manchester City in the Champions League group stage, I'm not saying they will make it to the final, but they can beat Manchester City because they're still struggling to win games.
However, Atalanta has already lost a game against PSG, though football can be unpredictable, I am not expecting much from Atalanta this season after selling important players and hiring a new manager. They sold many key players without finding the right replacement for them, if they make it out of the Champions League group stage this season, I believe they will be very lucky since they have yet to win at least a league games.