At first blush this seems like a sound plan. I would pay attention to
the "solidness" of the stucco, is it really bonded well and secure in
its current state ? Also look for cracks and separation, etc, where
bugs and bees might get into the stucco, a hole one cm by 0.5 cm is
enough to have a wall full of bees (personal experience !).

Personally I prefer stucco to vinyl in appearance; stucco also holds
paint well, last house I had was cement/stucco and was only painted
twice in 90 years.