Alex dropped to third-bottom in the table as the leakiest defence in the division proved no match for the attacking riches belonging to promotion-chasing Peterborough, who eventually won 4-2 at London Road.
Leading scorer Chuks Aneke took his league goals tally into double figures with a brace, but the relegation battlers left London Road empty-handed after failing to build on the Arsenal loanee's strikes.
Davis said: "Both teams went out there to win the game and there was plenty of goalmouth action at both ends.
"We are not getting battered in games, but we are giving away far too many gifts.
"We have scored two superbly-worked goals only to fail to build on them and concede almost immediately after on both occasions.
"I've always been confident we can stay up and that hasn't changed. There is plenty of spirit and fight in the camp, but we have got to stop making mistakes.
"Our away form has not been good enough all season and that is something else we need to address in the rest of the campaign."