I do worry about his long term future here, he doesn't really have any stand out talent in one particular area which makes it difficult to see where he will carve out a position. When he first burst onto the scene, he offered a balance to our team that the allowed the midfielders around him to thrive but that system we played under Koeman got found out and Davies has suffered most for it. I think the only place you can play Tom is in a midfield 3, he doesn't attack or defend well enough on his own to be played in a two.
I think a loan should be considered, for his sake more than anything. If doesn't play well again this season then that will be two seasons on the trot where he has underwhelmed, and it will be a very long way back into our first team, especially if we sign a top drawer central midfield player.