Barry Nicholson gave Preston a 16th minute lead but Paul Konchesky equalised in the 54th minute with his first goal for Forest since his arrival on loan in January.
Chris Cohen thought he had snatched the win for Forest when he found the net in the second minute of injury-time but Billy Jones popped up in the sixth minute of added time to nod home an equaliser for Preston.
"We have lost a late goal. It's disappointing but that's football. These things happen in football and you move on," said Davies. "We have scored late goals ourselves in the past and it's marvellous when they go in your favour but it's not so good when you are on the receiving end.
"We were very complacent in the first 45 minutes and didn't play with energy. We gave away a soft goal and didn't deserve anything. But we were better in the second half. We deserved an equaliser, deserved to get in front but then we were guilty of letting it slip in the 96th minute.
"But we'll take the point and put the players in cotton wool and prepare for the next game at Millwall on Saturday. We've had four games in nine days and there were times when we looked a bit leggy."