flooded basement
 

I had a finished basement that was flooded,removed furring strips drywall and paneling. is it a good idea to stucco block walls to give it a more finished look? I do not want to put paneling back up

Stucco will improve the look and not restrict moisture migration. You don't want to put a product on the walls that seals it so moisture is trapped. Stucco is a good choice.
There will be a learning curve to the application.