The Gers faced top opposition in their third Group D match, with the Portuguese side scoring two goals inside the last 15 minutes to earn themselves a point.
Although disappointed to concede late in the game, Davis feels the squad are in a strong position at the midway stage of the group.
Speaking to RangersTV after the match, he said: “We didn't really start the game as we would've liked to but after that there were a lot of positives to take. Of course there are areas we know we need to improve on as well.
“It is still a bit raw because of the position we got ourselves into and we thought we should've seen the game through.
“We are disappointed in the manner that we conceded the final two goals but once we sit back from it there are definitely a lot of positives to take.
“It just shows with the quality that they have you can never switch off so it is something we can improve on.
“They have a lot of quality, they cause you problems and it took us a while to get to grips with the game.
“You always have to be aware of the threat they carry but as I say the pleasing thing for us was how we passed the ball at times and the chances we created.
“It certainly is a fantastic position to be in and we would've taken that at the start of the campaign.
“We have three more games to look forward to, two at home, so we look to try and continue the way we have started.”
Davis praised the performance of striker Alfredo Morelos after he scored his 22nd European goal to beat Ally McCoist’s record and become Rangers’ top all-time European goalscorer.
“He was a handful all night and we know he can do that to the best of defenders,” Davis continued.
“He certainly made it awkward at times for them tonight and took his goal really well so I am delighted for him.
“We will be recovering quickly to get ourselves ready for Sunday and we know how important that game will be for us once again.”
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