Celtic have lost their opening three group games and are sitting at the bottom of Group F on zero points.
They lost 3-1 at RB Leipzig this week and are facing a battle in continuing to play European football in the latter half of the season at the moment.
However, Walker believes Celtic did compete against Leipzig in Germany and did create a decent number of chances against their more fancied Bundesliga counterparts.
He stressed that the Bhoys are good enough to spring a win when Leipzig visit Parkhead next week and feels that three points at home against the German champions will keep their Champions League hopes alive.
Walker said on the Go Radio Football Show: “I thought it was a good contest.
“I thought Celtic had a good number of chances and it wasn’t to be but I think the better team won on the night.
“But I wouldn’t put it past Celtic to turn it around when they play Leipzig at home and they are capable of beating them at home.
“And if they do, they are still in with a shout of finishing second.”
Celtic will visit St. Johnstone on Saturday afternoon before hosting Leipzig in the Champions League next week.
