The Gunners were held to a 2-2 draw at Vicarage Road after squandering a two-goal half-time lead as they conceded 31 shots during the contest.
They now travel to Germany to face Frankfurt as the two sides meet in their Europa League Group F clash at the Commerzbank Arena.
Frankfurt, who lost on penalties to Chelsea in the semi-final of last year’s competition before the Blues went on to beat Arsenal in the final, will be keen to show they can still compete despite a summer of change.
Attacking trio Luka Jovic, Sebastien Haller and Ante Rebic accounted for 56 of the 90 goals scored by the club last season but all were sold during the summer.
But Hutter believes Frankfurt can continue to build on where they left off, even if he does not expect Arsenal to be as poor as they were at the weekend.
“I saw the game against Watford,” he told reporters at his pre-match press conference.
“They were lucky to have not lost after a 2-0 lead. Nevertheless, I would not tie everything to it. They try to play football from the back.
“Their philosophy is clearly recognisable and I assume that they will perform accordingly tomorrow.
“On the other hand, we need a clear plan and we have both the solutions and the resources.”
Hutter also conceded that anticipation has grown following an unexpected run to the last four of the Europa League but believes everyone at the club remains grounded.
“Certainly the expectations have increased,” he added.
“The past season was exceptional with the semi-final and a total of 14 games. The bar is high, but we remain modest and still want to get as far as possible.
“Because of our achievements and the fact that we almost reached the final we are perceived differently.”