Celtic were bottom seeds in the Monaco draw and were paired with Bayern Munich and Paris Saint-Germain along with the Belgian champions.
Bayern and PSG, who have broken the world transfer record to sign Neymar in the current window, will be the favourites to progress from the group.
That scenario would leave Brendan Rodgers' men and the Belgian side looking for a place in the Europa League after Christmas but Davies insists the Scottish champions will aim high.
He said: "We are happy with that. We have two massive challenges there in Bayern and PSG and but obviously Anderlecht are the team that we can look to exploit as well.
I don't think the seedings are too far off. Anderlecht are in pot three and they would look at us in the same way.
"But what I will say is that with what we can deliver, especially at home and with the way the managers prepares the team, we will certainly go into games confident that we can get results.
"We are certainly not there in any way shape or form to resign ourselves to fighting for third place.
"That's not what you do at a club like this and it is just not how Brendan works.
"He will have the players working and believing that we can get results and we will see what happens.
"I am confident that we can be in Europe after Christmas, obviously the ultimate dream for us can we qualify into the last-16 but being in Europe after Christmas would be a fantastic achievement for us and I am certainly confident we can do that."