The 19-year-old scored a superb equaliser, his third goal in two Europa League matches, as the Latics maintained their unbeaten record with a 1-1 draw at home to Rubin Kazan.
Powell was the stand-out performer and Coyle hopes to be able to tease more out of the teenager during his season-long loan.
"After the season with us he will be good enough to go back and challenge (for a place at United)," said Coyle.
"He still has a lot to improve on and he will tell you that but he has ability. He is such a talented lad and I just want to get the best out of him.
"I'm giving him a platform and a wee bit of wisdom from my own playing days but he has to push himself on and you could see from his performance he is doing that.
"All I can do is try and impart any knowledge and experience I have as a player and a striker.
"As a manager I've worked with many international strikers and there is no doubt Nick Powell can go on to achieve that level.
"His aspirations should be after this season to go and challenge for Manchester United's first team and that will put him in the eyes of the national team.
"I believe he has everything in his locker, with progression and natural development, to attain that level.
"There's no doubt. I have been fortunate to work with young players and when they get a platform, they blossom, they flourish and he is doing that.
"Aside from his goal he has pace to burn and is so elegant running with the ball."
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