The Reds lasted until January without suffering a league defeat on their travels, but losses to Derby and Coventry on recent trips have seen them lose ground on the automatic promotion places.
West Brom and Newcastle lead the way at the top of the table, with Forest four points behind.
But Davies told the club's official website: "I don't think there are three in it, I think there are many more teams that could still come with a late run.
"As far as I'm concerned there are far too many points to play for to be only talking about three teams being in the hunt."
Source: Team Talk