Marcus Tudgay was Forest`s matchwinner, netting the only goal after just 51 seconds from the edge of the box to secure a sixth successive win.
Yet Davies said: "I think we are great candidates for the play-offs but if I am totally honest I think we are a little bit short for going up automatically. That is my honest evaluation.
"I have a great bunch of players here who work extremely hard and I am very proud of what they are doing.
"At the end of the day I look at what our rivals like Queens Park Rangers, Cardiff and Leicester are doing in terms of preparing themselves for the remainder of the season and that's why I take the view that I am.
"Sometimes I get frustrated because I am desperate to get this team and this club into the Premier League. But we have 18 games left to play - 18 big games - and we will attempt to accumulate as many points as we can. But we know that every point will be difficult to get."