You should read up on it - one place to start
Synthetic Stucco - EIFS
make sure you read all the linked pages. There are lawsuits surrounding this stuff. You could have much bigger problems beyond aesthetics.
If you have cracks you can and should caulk them. I think you can also paint over the repair. Before doing anything I would contact an expert and have a complete inspection done, including moisture tests around every door and window. It may also be wise to do a destructive inspection on the interior opposite of where you have obvious damage outside. In other words, remove some drywall inside and inspect the insulation and framing of the wall.