I have always argued that Davies' is one of the best in the squad in terms of first touch and his ability to use his feet in tight spaces. He has a really nice turn when under pressure, and has an ability to draw a foul. He then has vision and the ability to pick out a throughball, but rarely gets the chance in CM, as he often comes too deep to affect the game.
My concern defensively is that he is too lightweight to be CM, and tends to give away poor fouls. He often gets beaten too easily, and his recovery is often mediocre, nibbling at opposition's feet giving away fouls.
I do think because of the above that his best position will be a no 10. There is no doubt that he has the quality on the ball to be a top player, but whether he will get that opportunity with Everton I'm not so sure.