Jorge Jesus feels Paris Saint-Germain have the quality to win the UEFA Champions League after they beat his Benfica side 3-0.
Jesus' team were outclassed at the Parc des Princes by the Ligue 1 champions, who scored all of their goals in the first half.
Zlatan Ibrahimovic was the key man for PSG, the Swede scoring a double that was sandwiched by a strike from defender Marquinhos.
Jesus believes Benfica struggled to deal with a side destined to go far in the competition.
"We played against a very strong team," he said.
"They were eliminated by Barcelona (in the quarter-finals on away goals) without losing last season and they have strengthened.
"We wanted to be more aggressive but the first time showed that it was not possible. We played against a team that can win the Champions League."
Jesus refused to criticise his own players, however, preferring to focus on the strengths of their Group C rivals.
"I can't devalue the Benfica team," he added.
"I recognise the opponent, which is very strong. PSG commanded the game.
"Nobody likes to lose. We played a strong opponent and we had no capacity to match PSG."
The defeat leaves Benfica in third place, three points adrift of PSG and below Olympiacos - who they face in their next Champions League match - on goal difference.
And Jesus admits that the Lisbon club is now in a scrap for second place with the Greek side.
"We knew this game was going to be difficult," he explained.
"We have to fight with Olympiacos for second place."